Understanding Form Q7B: How the UAE Businesses Can Benefit from the KSA-UAE Double Tax Treaty?
If you're a UAE-based business dealing with clients or partners in Saudi Arabia, there's an important tax form you need to know about — Form Q7B. This form is your gateway to taking advantage of the Double Taxation Treaty (DTT) between the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA).
Form Q7B relief is not automatic and is assessed on an individual basis by Saudi Arabia’s ZATCA. UAE companies can access withholding tax benefits under the UAE-KSA Double Tax Treaty only if they meet eligibility criteria and submit proper documentation.
What is Form Q7B?
Form Q7B is a specific form that must be filed with the Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia when a Saudi entity seeks to benefit from the UAE-KSA Double Tax Treaty (DTT). This form is submitted in cases where a Saudi entity is making a payment to a non-resident entity (such as a UAE company) and wishes to avail the reduced tax rates or exemptions provided under the DTT.
Process for Certifying Form Q7B for ZATCA Submission:
- Fill out Form Q7B with the assistance of the Saudi resident payer.
- Apply for the Tax Residency Certificate (TRC) along with apply to the FTA for Stamping the Q7B Form
- Get the FTA Stamped Q7B Form Attested by the Ministry of Foreign Affairs (MOFA)
- Get the Attested Q7B Form for Submission to the Saudi Embassy in the UAE
- Submit the Certified Q7B Form to ZATCA
Benefits of Form Q7B under the UAE-KSA DTT
- Avoidance of Double Taxation:
By submitting Form Q7B, entities can claim relief from double taxation on income or payments, ensuring that the same income is not taxed in both Saudi Arabia and the UAE.
2. Improved Cash Flow for UAE Entities:
The reduced withholding tax rates, facilitated by the filing of Form Q7B, help UAE entities receive more of the payment without the need to claim refunds or deal with the complexities of double taxation.
How CLA Emirates Can Help You Navigate Form Q7B and the KSA-UAE Double Tax Treaty?
At CLA Emirates, we specialize in helping businesses across the UAE understand and take full advantage of cross-border tax treaties, including the KSA-UAE Double Tax Treaty. Our experienced tax consultants provide tailored guidance on Form Q7B, which is essential for UAE-based businesses seeking tax relief in Saudi Arabia.
Here’s how we support you:
- Expert Analysis of Form Q7B: We break down the complexities of the form and ensure it is accurately completed and submitted in line with Saudi tax authority requirements.
- Documentation Support: We assist in gathering and preparing all necessary supporting documents to avoid delays or rejections.
- Cross-Border Tax Planning: CLA Emirates advises on structuring your UAE-KSA operations to maximize tax efficiency under the Double Tax Treaty.
- Ongoing Compliance: We ensure your business stays compliant with any updates or changes in the treaty’s application or reporting requirements.
Partnering with CLA Emirates means gaining peace of mind through reliable tax expertise and cross-border compliance support—so you can focus on growing your business in both the UAE and Saudi Arabia.
Our team is highly experienced in working with global enterprises, foreign subsidiaries, international NGOs, and offshore companies registered in the UAE.
Call for Consultation
Mr. Ragesh Mattummal | Partner
Mob: +971 50 3578031
Email: Ragesh.Mattummal@claemirates.com
