Qatar–Kuwait Double Tax Treaty Ratified, Boosting Cross-Border Tax Certainty

Qatar, 28 April, 2026: Qatar has officially ratified a double taxation agreement with Kuwait, marking a key step in strengthening bilateral tax cooperation and supporting cross-border investment.

The ratification was issued under Emiri Decree No. (1) of 2026 and published in Qatar’s Official Gazette on 15 March 2026. Kuwait had earlier approved the treaty through Decree-Law No. 142 of 2025.

The agreement will enter into force after both countries exchange instruments of ratification through diplomatic channels. Once effective, it will apply according to the timelines set out in the treaty.

The double tax agreement is aimed at eliminating double taxation, improving tax certainty, and encouraging investment flows between the two Gulf states.

Key Provisions Include:

• Dividends & Interest: Taxable only in the recipient’s country of residence, with no withholding tax in the source country.
• Royalties: May be taxed in the source country, capped at 8%.
• Capital Gains:
  • Immovable property taxed where the asset is located
  • Business assets taxed where the permanent establishment exists
  • International transport gains taxed in the place of effective management
  • Other gains taxed in the seller’s country of residence

The treaty reflects a broader regional trend of expanding tax treaty networks to support investment and reduce tax barriers across jurisdictions.