Saudi withholding tax: dealing with the tax risk and secondary liability

Article Abstract:

Foreign corporations in Saudi Arabia may be subject to tax even without registration or a permanent base because the corporations have contracted with local companies. These contracts are subject to taxation and the foreign company may incur a secondary liability for the tax if the Saudi company fails to pay it. The income tax on foreign corporations is high, up to 45%, and so it is important to make sure the tax is paid but the DZIT has no obligation to tell corporations whether or not they are subject to the tax. Therefore, specifying tax obligations in the contracts is advisable.

Analysis, Taxation, Foreign corporations, Tax policy, Withholding tax

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Report on a legal and commercial fact-finding mission to Iraq

Article Abstract:

A fact-finding mission to Iraq reveals the effects of the economic sanctions imposed by the UN as a result of the country's invasion of Kuwait in 1990. Baghdad, the Iraqi capital, can be reached only by hiring a taxi in Amman, Jordan. In Baghdad, the roads are in extremely poor condition and spare parts for cars are unavailable. Basic necessities are still rationed by the government, while other consumer goods are priced according to demand and availability. However, a Memorandum of Understanding on Iraqi oil exports signed with the UN in May 1996 could bring improvements.

Administration of General Economic Programs, Trade Bans & Embargos, Economic aspects, Economic sanctions, Sanctions (International law), Iraq, Embargoes

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Enforcing trademark rights

Article Abstract:

A trademark infringement case now developing in Saudi Arabia suggests that the Saudi government will further strengthen the legal protection of trademarks. Johnson & Johnson filed complaints on Oct 21 and Nov 21, 1992 against a Saudi firm, Batterjee Factory for Cosmetics and Babycare Est, for counterfeiting trademarks and attempting to pass off its own products as Johnson & Johnson's. The Board of Grievances' 10th and 11th Commercial Circuits responded favorably to Johnson & Johnson's complaints, indicating tentative acceptance of passing-off as a form of infringement.

Cases, Economic policy, Trademarks

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