AGREEMENT BETWEEN

METHODS FOR ELIMINATION OF DOUBLE TAXATION 1.  Where a resident of a Contracting State derives income or owns capital which may be taxed in the other Contracting State in accordance with the provisions of this Agreement (except to the extent that these provisions allow taxation by that other Contracting State solely because the income is also income derived by a resident of that Contracting State or because the capital is also capital owned by a resident of that Contracting State), the first-mentioned Contracting State shall allow: a)  as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in that other Contracting State; b)  as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in that other Contracting State. Such deduction in either case shall not, however, exceed that part of the income tax or capi- tal tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in that other Contracting State. 2.  Where in accordance with any provision of this Agreement, income derived or capital owned by a resident of a Contracting State is exempt from tax in that Contracting State, such Contracting State may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital. 3.  In the case of the Kingdom of Saudi Arabia, the methods for the elimination of double taxation will not prejudice the provisions of the Zakat collection regime.