16 February 2016

Saudi Arabian Government clarifies Service PE concept

In response to a formal request from an international government organization, the Government, via a ministerial authority, has clarified when a nonresident service provider is considered as having established a service PE in the KSA. Although many business and tax professionals were aware of the Government's unofficial position, this is the first time the Saudi tax authorities have formally communicated this position.

A Tax Alert prepared by Ernst & Young Saudi Arabia, and attached below, provides additional details.

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Document ID: 2016-0328