background_image
background_image

First of its kind: Kuwait signs DTAA with a GCC Member State.

First of its kind: Kuwait signs DTAA with a GCC Member State |

August 30, 2022 |

2 mins read

The Kuwait Ministry of Finance announced the signing of an Income Tax Treaty with the United Arab Emirates on 30th August 2022. Being newsworthy, it’s unique in the sense that it is the first of a kind of agreement for Kuwait that has been signed with a Gulf Cooperation Council Member (GCC) State. It shall come into force once the ratification instruments have been exchanged between the participating nations.

This has been long in the making for the parties. In June 202, Kuwait and the UAE opened up channels of conversations to enter into bilateral relations with specific mention of a mutual tax treaty.

Bird’s Eye View

Finally crystallizing in 2022, the double tax treaty is a comprehensive document setting out broad rules on mitigation of issues such as double taxation and to strengthen financial and economic cooperation between the Contracting States. Both nations wish to foster a framework for cooperation on tax matters and attract global investment, encourage commerce and trade and enhance economic development of both Gulf nations.

Resultantly, it will be quid pro quo:it will open up diverse avenues of inflow of FDIs for the States and enterprises will be able to enjoy tax benefits and protection of their business.

What’s next?

Although the tax treaty is signed, it is still on hold, pending ratification. The tax treaty will be referred to the National Assembly in Kuwait to be ratified by them, through the Council of Ministers for Legal Advice and Legislation. Once it is ratified, the tax treaty shall be published in its Official Gazette and shall become enforceable as has been mentioned in the tax treaty.

  • Featured News
  • Latest News
event-img

Lambda Therapeutic Research Ltd. Income Tax Officer (International Taxation)  Citation: IT APPEAL NO. 3197 (AHD.) OF 2016 Date of Judgment:

February 1, 2023

event-img

The Kuwait Ministry of Finance announced the signing of an Income Tax Treaty with the United Arab Emirates on 30th

February 1, 2023

event-img

With the new changes taking place in the global taxation regime, Barbados and the others in the Caribbean Community (CARICOM)

February 1, 2023

event-img

The United Arab Emirates has announced the introduction of a 9% corporate tax rate, to become enforceable from 1st June

February 1, 2023

event-img

There is no tax bracket for the real estate sector in Dubai, making it, although, an attractive investment option, but

February 1, 2023

vectorblog
contact-setting