CONVENTION BETWEEN

Methods for Elimination of Double Taxation Double taxation shall be eliminated as follows: 1.  in the case of Georgia: a)  Where a resident of Georgia derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in the Kingdom of Saudi Arabia, Georgia shall allow: i)  as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in the Kingdom of Saudi Arabia; ii)  as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in the Kingdom of Saudi Arabia . Such deduction in either case shall not, however, exceed the sums of the tax which would have been accrued according to the rules and rates on this income and capital effective in Georgia. b)  Where in accordance with any provision of the Agreement income derived or capital owned by a resident of Georgia is exempt from tax in Georgia, Georgia 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. 2.  in the case of the Kingdom of Saudi Arabia: a)  Where a resident of the Kingdom of Saudi Arabia derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in Georgia, the Kingdom of Saudi Arabia shall allow: i)  as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Georgia; ii)  as a deduction from the tax on capital of that resident, an amount equal to the tax on capital paid in Georgia. Such deduction in either case shall not, however, exceed that part of the income tax or capital 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 the Kingdom of Saudi Arabia. b)  the methods for elimination of double taxation will not prejudice the provisions of the Zakat collection regime.