The State of Kuwait and United Arab Emirates have signed a double Tax Treaty has been saved
The State of Kuwait and United Arab Emirates have signed a double Tax Treaty
On 30 August 2022, the Kuwait Ministry of Finance announced that the State of Kuwait (Kuwait) and the United Arab Emirates (UAE) recently signed a Treaty for the avoidance of double taxation (“the Tax Treaty”).
The objective of the Tax Treaty is to strengthen the co-operation frameworks in tax matters and unite the financial, economic, and investment partnership between the two countries.
This is in line with the efforts of both countries in growing investment opportunities, encouraging commercial trading and enhancing the development goals of both countries through diversifying the sources of national income and providing full protection of goods and services.
This is the first Tax Treaty that Kuwait has signed with any Gulf Cooperation
Council (GCC) member state.
- The Tax Treaty is initially signed between the undersecretary of the tax department in the State of Kuwait and UAE. This should be followed by the final ratification of the Tax Treaty between both countries.
- The Tax Treaty shall be referred to by the National Assembly of Kuwait through the Council of Ministries “Legal Advice & Legislation” in Kuwait.
- Upon the ratification of the National Assembly, the Tax Treaty shall be published in the official Gazette in Kuwait and shall be put into force as per the date that will be specified in the Tax Treaty.
We will keep you updated with the key provisions of the Tax Treaty as soon as we obtain the signed version.