Kuwait and UAE Sign Landmark Agreement to Prevent Double Taxation

The UAE and Kuwait signed an agreement to prevent double taxation between the two countries, specifically pertaining to income and capital taxes, with the aim of preventing tax evasion.

Double taxation occurs when the same person is subject to taxation twice on the same income or capital in more than one country, and it negatively affects international trade and economic growth.

Tax treaty agreements have successfully prevented double taxation, thereby avoiding hindrances to free trade and promoting investment, attracting a larger number of investments to countries.

The Kuwaiti Minister of Finance and Minister of State for Economic and Investment Affairs, Anwar Ali Al-Mudaf, stated in an interview with the official Emirati news agency (WAM) that the agreement is part of the economic and financial integration and the freedom of capital movement between the UAE and Kuwait, expecting it to contribute positively to the citizens and investors of both countries.

The agreement was signed on Sunday on the sidelines of the 8th Arab Public Finance Forum during the pre-summit day of the 2024 World Government Summit hosted by Dubai.

Earlier on Sunday, the United Arab Emirates also signed an agreement with Egypt to avoid double taxation and regulate tax transactions between the two countries.

According to the website of the UAE Ministry of Finance, the UAE has entered into 193 bilateral agreements with the aim of exempting or reducing income tax double taxation, promoting investment and profits from direct and indirect taxes, in addition to protecting those investments.