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How are pensions taxed under the Pakistan-Saudi Arabia tax treaty?

Under the Pakistan-Saudi Arabia tax treaty, private pensions are generally taxable only in the country of residence β€” meaning no withholding tax applies at source (0%). This is favorable for retirees who have moved between the two countries, as their pension income will not be subject to double taxation. Government pensions may have different rules under a separate treaty article. This 0% rate compares to a median of 0% across Pakistan's 28 active treaty partners, and 0% across Saudi Arabia's 23 active partners.

Network Comparison

Pakistan

Rank 22 of 28 active treaties (lowest rate = #1)

Lower rates with: Netherlands (0%), Norway (0%), Poland (0%)

Higher rates with: Sweden (0%), Singapore (0%), Thailand (0%)

Saudi Arabia

Rank 17 of 23 active treaties (lowest rate = #1)

Lower rates with: South Korea (0%), Malaysia (0%), Netherlands (0%)

Higher rates with: Poland (0%), Russia (0%), Singapore (0%)

Sources

Data last reviewed: 2026-04-07

Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax β€” the residence country may still tax the income. This is not tax advice.

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