The Kuwait and Lithuania income tax treaty was signed on April 18, 2013.The treaty will enter into force after both countries exchange ratification instruments. The requirements of the treaty will apply from 1st January, 2015 after the agreement enters into force.
The treaty emphases on dividends, that is taxable at a maximum rate of 5 % if the beneficial owner of the dividends is a company, except a partnership, that holds directly at least 10 % of the capital of the company paying the dividends.
In other cases, a maximum rate of 15% will apply. For Interest and royalties maximum of 10%will apply. Credit method is used by both countries to eliminate double taxation.
