France and Saudi Arabia are bound by a tax treaty signed on 18 February 1982 covering taxes on income and on inheritance, with zakat listed on the Saudi side. It is not permanent: it is renewed for five-year periods, most recently from 1 January 2024 (French decree 2024-227 of 14 March 2024). It was amended in 1991 and 2011.
Dividends paid by a Saudi company to a French resident are taxable only in France (article 6), unless they are connected with a business the recipient carries on in Saudi Arabia. Interest and royalties follow the same rule (articles 7 and 8). Without a treaty, Saudi withholding tax on dividends is 5%. To claim the treaty rate, form Q7B is filled in online with ZATCA (Zakat, Tax and Customs Authority) by the recipient or the paying company, certified by the French tax authority and then submitted to ZATCA. The service is free.
The Saudi company's profits are still taxed in Saudi Arabia: 20% on the share attributable to non-Saudi shareholders. For a French business working in the Kingdom without a local company, the treaty sets presence thresholds: more than six months in any twelve for certain services, and more than twelve months for a construction site, under the most-favoured-nation clause as read by the French tax administration (BOFiP, July 2024).
On the French side, article 15 exempts Saudi-source industrial and commercial income and grants a tax credit for other income taxed in Saudi Arabia. How this applies to you depends on your tax residence, so have it confirmed by a tax lawyer or chartered accountant. Tasis is neither.
Social security: no agreement between France and Saudi Arabia
Saudi Arabia is not on the list of bilateral social security agreements signed by France (CLEISS). Your French cover does not continue automatically; it depends on your situation.
Table 2