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Form Q7B plays a crucial role in claiming tax treaty benefits in Saudi Arabia, especially for non-residents receiving taxable income from the Kingdom. At J K Management Consultancy, we specialize in assisting businesses and individuals in understanding and complying with withholding tax (WHT) rules across the GCC countries, with a particular focus on Saudi Arabia’s treaty-based relief procedures.
What Is Form Q7B?
Form Q7B is the official format prescribed by Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA) to claim tax treaty relief on withholding tax. This form must be submitted by a Saudi entity making a payment to a non-resident beneficiary who seeks to benefit from a reduced WHT rate under an applicable double tax treaty.
To use Form Q7B effectively:
A Tax Residency Certificate must be issued by the foreign beneficiary’s tax authority.
The form must be attested by the Saudi Embassy in the non-resident’s country and the Ministry of Foreign Affairs in Saudi Arabia.
An undertaking letter from the Saudi payer must also be submitted, attested by the Chamber of Commerce.
Withholding Tax in GCC Countries
🇸🇦 Saudi Arabia
- 15% on Royalties
- 5% on Technical Fees, Interest, and Dividends
- 15% on Commissions, Attendance Fees, and other Saudi-sourced services
- Monthly Withholding Tax Returns must be filed online within 10 days after month-end.
- Late payments incur a 1% fine per 30 days of delay.
- Transactions with related parties are considered paid on the date of recording if no cash transfer is made.
WHT Treaty Relief Using Form Q7B
To apply reduced rates under a tax treaty:
Report all payments in WHT returns
Submit a Form Q7B with required attestations
Maintain complete records for 10 years or longer if under audit
If unable to meet requirements, tax must be withheld as per domestic WHT rates
Refund Procedure for Overpaid
Withholding Tax
If WHT was overpaid due to not applying treaty benefits upfront:
Submit a refund request to ZATCA
Include a Tax Residency Certificate, bank receipt, and WHT form copy
Refunds must be claimed within 5 years from the year of overpayment
🇴🇲 Oman
- Flat 10% WHT on gross payments
- Applies to services, royalties, and interest paid to non-residents
🇶🇦 Qatar
- 5% WHT on Royalties, Technical Fees, Interest, Commissions, and other services
- WHT returns are due by the 15th of the following month
🇰🇼 Kuwait
- No formal WHT, but 5% retention is required on payments until a No Objection Letter is provided by KTA
🇦🇪 UAE & 🇧🇭 Bahrain
- No withholding tax imposed as of now
Importance of Compliance and Expert Support
Incorrect filing or failure to submit Form Q7B properly can result in:
Rejection of treaty benefits
Additional tax and penalties
Delays in refunds
At J K Management Consultancy, we:
Assist in preparing and attesting Form Q7B
Manage withholding tax filings across Saudi Arabia and GCC
Support clients in refund applications for overpaid taxes
Ensure full compliance with ZATCA and local tax laws
Contact Now
Need help with Form Q7B, tax treaty benefits, or withholding tax compliance in Saudi Arabia and the GCC?
Based in Dubai, J K Management Consultancy is your trusted partner for tax advisory and corporate compliance services.
Reach out to us today to ensure your business is compliant, efficient, and maximally tax-advantaged.
