RIYADH: Qatar and Kuwait have signed an agreement to eliminate double taxation and prevent tax evasion and avoidance, aiming to enhance economic coordination and commercial ties. 

The accord seeks to establish a legal framework to eliminate all forms of double taxation on income and to reinforce bilateral cooperation in tax matters by aligning with international standards, the Qatar News Agency reported.

The deal was signed by Qatari Minister of Finance Ali bin Ahmed Al-Kuwari and Kuwaiti Minister of Finance and Minister of State for Economic Affairs and Investment Noura Sulaiman Al-Fassam.

The countries currently do not impose personal income tax on individuals, but both levy corporate tax on foreign entities. Qatar enforces a flat 10 percent corporate income tax, while Kuwait applies a 15 percent tax on profits earned by foreign companies operating in the country. 

“This agreement will contribute to supporting international standards of transparency through the exchange of verified financial information, as part of both countries’ commitment to strengthening coordination and cooperation in tax matters and economic relations,” Al-Kuwari said during the signing, as quoted by QNA. 

The agreement also aims to enhance commercial cooperation, broaden investment opportunities for government entities and individuals, combat tax evasion, and support neutrality and fairness in the treatment of taxpayers. 

In addition, Kuwaiti Minister Al-Fassam signed a memorandum of understanding with Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan, who led a Saudi delegation participating in the 123rd meeting of the Financial and Economic Cooperation Committee of the GCC in Kuwait. 

“During the meeting, participants discussed several topics related to enhancing financial and economic cooperation among GCC member states in a way that contributes to further joint Gulf cooperation,” Al-Jadaan said in a post on X. 

The deal, signed on the sidelines of the meeting between Saudi Arabia and Kuwait, aims to enhance cooperation in the financial sector. 

“The MoU will deepen bilateral ties and foster enhanced cooperation in the financial sector, advancing the shared strategic interests of both brotherly nations,” Al-Jadaan added. 

The deal seeks to develop and strengthen ties between the two ministries and increase collaboration in support of shared interests between the two countries.