Kuwait Spain Tax TreatyJuly 2013
The double tax treaty of 2008 between the two countries entered into force on July 19, 2013.
According to the tax treaty the tax withholding rate for payments of dividends is 0%/5% depending on the percentage of shareholding in the paying company.
The tax withholding rate for interest is zero.
For royalties the rate is 5%.
In general double tax treaties between two countries are boosting mutual investments between the countries offering reduced tax withholding rates from payments of dividends, interest and royalties.
The tax treaty often includes an exchange of tax information clause and definition of a permanent establishment for activities carried in the other country.
It also clarifies certain cross border tax issues.
E.g the treaty would define in what country tax is to be paid when a service supplier/consultant from country A provides services in country B.
In some treaties there is a tax credit under certain terms. E.g. an exemption to a consultant from country A of X dollars per each day of staying in country B in order to supply the taxable services.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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