Kuwait city: Kuwait and Jordan have finalized a protocol amending their existing agreement on the avoidance of double taxation and the prevention of income tax evasion. This significant development was highlighted in a recent statement by the Ministry of Finance.
According to Kuwait News Agency, the protocol was signed by Kuwaiti Finance Undersecretary Aseel Al-Munifi and Jordan's Ambassador to Kuwait Sinan Al-Majali. The amendment is designed to enhance tax cooperation between Kuwait and Jordan, focusing on preventing both double taxation and tax evasion. The initiative aims to encourage investment and improve transparency through a more effective exchange of tax information.
The Ministry of Finance elaborated that the protocol is also set to improve the business environment by simplifying tax procedures, ensuring legal protection for investors, and aligning Kuwait's tax framework with international standards established by the OECD. The updates include provisions endorsed by the OECD to combat the misuse of tax agreements and promote transparency. These changes are in accordance with Decree Law No. 4 of 2024 on the exchange of tax information and Decree Law No. 157 of 2024 concerning taxation of multinational enterprise groups.