Kuwaiti Minister of Finance and Minister of State for Economic Affairs and Investment, Dr. Anwar Al-Mufadd, alongside UAE Minister of State for Financial Affairs, Mohammed Al-Husseini, inked a pivotal agreement aimed at preventing double taxation between their respective countries.
The signing ceremony was held on the sidelines of Kuwait’s engagement in the 8th Arab Public Finance Forum held in Dubai on Sunday.
The Ministry of Finance, in a statement to the Kuwait News Agency (KUNA), announced the finalization of the agreement, with officials from the International Monetary Fund (IMF) participating in the signing process.
The agreement aims to avoid double taxation on income and capital, and to prevent tax evasion and avoidance.
The statement added that minister Al-Mufadd chaired the third session of the 8th Forum, which focused on budget-based comparisons for creating value from public assets. He also presented Kuwait’s experience in this regard.
Minister Al-Mufadd emphasized the significant importance of the agreement aimed at preventing double taxation between the two nations.
He told KUNA that it is “a very important and necessary agreement, the first of its kind between the two countries, and aims to keep pace with international changes regarding the misuse of tax agreements and combat tax evasion.”
He emphasized that “strengthening trade and fraternal relations with the UAE is mutually advantageous for both nations, particularly given the directive from Kuwaiti political leadership emphasizing the utmost importance of Gulf cooperation. We are strategic partners, bound by shared goals and mutual benefits.”
Minister Al-Mufadd highlighted the benefits of the doubletaxation avoidance agreement, emphasizing its role in safeguarding the Kuwaiti economy, particularly given the significant investments of Kuwaiti citizens in the UAE. Furthermore, it will alleviate financial hurdles for individuals or companies conducting operations within the country.
He emphasized the significance of Kuwait’s involvement in the 8th Arab Public Finance Forum in Dubai, where various topics were discussed, including strategies to optimize returns from state assets such as real estate, land, small projects, and others to diversify sources of income.
Additionally, the minister met Egyptian Finance Minister Dr Mohamed Maait and the Director of the Center for Tax Policy and Administration at the Organization for Economic Cooperation and Development (OECD), ManalKorine.
The meetings aimed to discuss ways to strengthen relations between Kuwait and sister countries and international organizations.
The statement noted that minister Al-Husseiniinaugurated the forum, which was attended by a number of Arab finance ministers, central bank governors, and IMF Managing Director Kristalina Georgieva.
The 8th Arab Public Finance Forum sets the stage for the World Government Summit 2024, scheduled to commence in Dubai on Monday.
His Highness the Prime Minister Sheikh Dr. Mohammed Al-Sabah received an invitation from the Vice President and Prime Minister of the UAE and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, to attend the summit.
Kuwait’s participation in the summit will be represented by KUNA Director General Dr. Fatima Al-Salem and Acting Director General of the Public Authority for Civil Information, Mansour Al-Muzayen.