A pending income tax treaty with Lithuania was approved by Kuwait’s National Assembly on January 27, 2015. Both countries apply the credit method to eliminate double taxation.
Under the treaty, dividends are taxable at a maximum rate of 5% if the beneficial owner is a company other than a partnership that directly holds at least 10% of the capital of the payer company. In all other cases it is 15%. Interest and royalties are taxable at a maximum rate of 10%. The treaty will enter into force after the countries exchange ratification instruments, and its provisions will apply from January 1 of the year following its entry into force.
