The signing ceremony was held on 9 November 2023 on the sidelines of the Saudi-Arab-African Economic Conference, currently being held in Riyadh.
The agreement aims to enhance cooperation between the two countries in the areas 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 this signature, the two Authorities will proceed to the ratification of the agreement in our respective Parliaments 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.
Signed
Source: Ministry of Finance and Economic Affairs
