A decree has been issued approving an agreement between Kuwait and Iraq aimed at preventing double taxation and financial evasion concerning income and capital taxes, as reported by Al Qabas newspaper.
The explanatory note stated that to strengthen mutual economic relations between the government of Kuwait and the government of Iraq, an agreement was signed to avoid double taxation and prevent financial evasion concerning income and capital taxes.
Article (1) of the decree states that “it applies to persons residing in one or both of the contracting states,” while Article (2) specifies the taxes covered by this decree.
The agreement includes dividends, meaning income from shares, usufruct shares, founders’ shares, or other rights that do not represent debt claims, as well as income from the rights of other companies, such as income from shares, in accordance with the laws of the contracting state where the income-distributing company is considered a resident.
The decree stipulates that confidential information must be exchanged between the competent authorities of the two states concerning the implementation of its provisions.
Additionally, the decree excludes income received by a resident of a contracting state as a theater performer, filmmaker, radio or television artist, musician, or athlete, which may be taxed in the other contracting state.
