On November 9th Saudi Arabia and Gambia sealed a deal over taxation matters, a statement from Ministry of Finance indicated.
According to the statement, Saudi’s Governor of the Zakat, Tax and Customs Authority Eng. Suhail Abanmiand Gambia’s Minister of Finance and Economic Affairs Hon. Seedy K.M. KEITA signed an agreement between the Kingdom of Saudi Arabia and the Republic of The Gambia for the avoidance of double taxation with respect to Income and Prevention of Tax Evasion.
The signing ceremony was held on the sidelines of the Saudi-Arab-African Economic Conference, held in Riyadh. The agreement aims to enhance cooperation between the two countries in the area of investment promotion, economic cooperation, and protection of investments between the two states.
The Agreement will bring the two states much closer for both governments and private investors to conduct business activities in an atmosphere where the avoidance of double taxation and non-double taxation becomes the business of the two states.
Furthermore, the agreement will also serve as a tool for investment protection of investors of the two states from the effect of double taxation.
The taxes covered under this agreement will be Income taxes- (Company and Personal) and Capital gains tax in the case of The Gambia and Zakat and income tax including natural gas investment tax in the case of the Kingdom of Saudi Arabia.
The agreement also provides a framework for the Exchange of Information to facilitate the execution of the agreement.
Following the signing the two authorities will proceed to the ratification of the agreement in their respective parliament for the agreement to become effective. Double taxation is often an unintended consequence of tax legislation.
It is generally seen as a negative element of a tax system, and tax authorities attempt to avoid it whenever possible.
Once done, both governments and residents of the two parties can use the agreement as an instrument for conducting their businesses around the spirit of the agreement.