Kuwait signs two OECD pacts to boost tax transparency, combat financial evasion
Kuwait’s Undersecretary of the Ministry of Finance Asil Al-Munaifi, has signed two international agreements at the Organisation for Economic Co-operation and Development (OECD) headquarters in Paris, to reinforce the country’s commitment to global standards on tax transparency and efforts to combat financial evasion.
In a press statement, the Ministry of Finance said the agreements include the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC-R MCAA) and the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information Addendum (CRS MCAA 2.0 Addendum).
The ministry explained that the first agreement enables the automatic exchange of multinational corporations’ financial reports between tax authorities.
This provides participating countries with detailed data on revenues, profits, taxes, and economic activity across jurisdictions, enhancing their ability to assess risks and detect potential tax avoidance practices.
The second agreement expands the scope of the Common Reporting Standard (CRS) by strengthening requirements related to the automatic exchange of financial account information.
It aims to keep pace with developments in the global financial system and reinforce international cooperation in addressing emerging tax challenges.
The Ministry of Finance stated that the signing reflects Kuwait’s ongoing commitment to implementing international standards, particularly those linked to the Base Erosion and Profit Shifting (BEPS) framework, which sets minimum global requirements for tax transparency.
It added that t
