The Saudi Council of Ministers authorised the signing of an income tax treaty with Kuwait on 23 July 2024. This will be the first tax treaty between the two Gulf nations once finalised, signed and ratified.
The treaty aims to eliminate double taxation, prevent tax evasion, and promote investment and commercial cooperation between Saudi Arabia and Kuwait.
A tax treaty, or Double Tax Agreement (DTA), is a bilateral agreement between two countries aimed at resolving issues related to the double taxation of passive and active income for their respective citizens. These treaties typically specify the amount of tax that each country can impose on a taxpayer’s income, capital, estate, or wealth.
