Japan – Saudi Arabia Tax Treaty
The Japan-Saudi Arabia tax treaty caps withholding on dividends at 10% for portfolio investors and 5% for qualifying direct investment, and interest at 5%. Royalty rates vary by category, from 5% on copyright to 10% on film and television. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 47 active treaties in Japan's network and one of 23 in Saudi Arabia's. The general dividend rate of 10% compares to a median of 15% across Japan's network and 5% across Saudi Arabia's.
Verified data
ZATCA Tax Treaty Network (zatca.gov.sa) (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12). Saudi Arabia charges 5% WHT on dividends and interest, 15% on royalties.)
Withholding Rate Summary
Source: Saudi Arabia Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Saudi Arabia) |
|---|---|---|
| Dividends (general) Portfolio investors | 10% | 5% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 5% | 5% |
| Interest Bank interest, bonds, loans | 5% | 5% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 6.3% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Saudi Arabia)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 10% applies to portfolio investors. A reduced rate of 5% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 5%.
Source: Saudi Arabia Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 5% withholding under this treaty, compared to the 5% statutory rate. This represents a no reduction from the statutory rate.
Source: Saudi Arabia Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 5% to 10%.
Source: Saudi Arabia Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Saudi Arabia Treaty Reference
Comparative Context
🇯🇵Japan's Network
Among Japan's 47 active treaty partners, the 10% general dividend rate ranks 13th (median: 15%).
| Partner | Rate |
|---|---|
| Pakistan | 10% |
| Portugal | 10% |
| Romania | 10% |
| Saudi Arabia (this treaty) | 10% |
| Sweden | 10% |
| United States | 10% |
| Vietnam | 10% |
🇸🇦Saudi Arabia's Network
Among Saudi Arabia's 23 active treaty partners, the 10% general dividend rate ranks 19th (median: 5%).
| Partner | Rate |
|---|---|
| United States | 5% |
| South Africa | 5% |
| Italy | 10% |
| Japan (this treaty) | 10% |
| South Korea | 10% |
| Netherlands | 10% |
| Pakistan | 10% |