RIYADH: Trading between Kuwait and the UAE is set to get a boost thanks to an agreement aimed at eliminating double taxation on income and curbing tax evasion.
This landmark deal was signed during the 8th Arab Fiscal Forum, which took place on the eve of the World Governments Summit 2024, signaling a significant step toward economic integration between the two nations, as reported by the Kuwait News Agency.
Kuwaiti Finance Minister Anwar Al-Mudhaf and his UAE counterpart, Mohamed Hussaini, formalized the agreement, with representatives from the IMF monitoring the talks.
Al-Mudhaf highlighted the deal’s role in fostering financial integration and the free movement of capital between Kuwait and the UAE in a discussion with the Emirates News Agency, also known as WAM.
He underscored the agreement’s contribution to broader regional economic unification efforts.
Al-Mudhaf went on to emphasize the strategic significance of the WGS, an annual forum for deliberating on future prospects and pressing global challenges.
He remarked that Kuwait’s participation underscores the deep-rooted strategic relations between Kuwait and the UAE.
Al-Mudhaf further noted that the participation of over 25 heads of state, 140 government delegations, and upward of 85 international and regional bodies in the summit underscores the UAE’s international standing and its critical economic and political influence.
A report by Deloitte in August 2022 highlighted that Kuwait and the UAE had laid the groundwork for this taxation agreement, marking a pioneering step in their collaboration to enhance tax-related cooperation and unify their economic and investment partnership.
The deal was first initiated to bolster investment prospects, stimulate trade activities, and support both nations’ development objectives by diversifying income sources and ensuring the comprehensive protection of goods and services.
Notably, this agreement represented Kuwait’s first such deal with a Gulf Cooperation Council member state, signifying a milestone in regional economic diplomacy.
Similarly, the income and capital tax deal between Saudi Arabia and the UAE entered into force in April 2019.
Originally signed in May 2018, the treaty was the first of its kind between the two countries.
