The Hong Kong Special Administrative Region and Kuwait signed an Income Tax Treaty in May 2010. In a press release it has been announced that the treaty came into force on July 24 after completion of ratification procedures on both sides. The provisions of the treaty will have effect from 1 April 2014.
In accordance with the treaty, the maximum withholding tax on dividends is 5%, or 0% in the case of dividends paid to governments; the maximum withholding tax is 5% on interest, with some exemptions and 5% in the case of royalty payments.
The agreement also contains provisions in respect of non-discrimination, exchange of information and the mutual agreement procedure.
