Article 1
Persons covered by the agreement

1. This agreement applies to persons residing in one or both contracting states.

2. For the purposes of this Agreement, income earned by or through an entity or arrangement and treated as financial and transparent under the tax law of either Contracting State shall be deemed to be income earned by a resident of Contracting State but only to the extent that such income is treated for tax purposes by that contracting party states that it is the income of a resident therein.

Article 2
Taxes covered by the agreement

1. This agreement shall apply to taxes on income and capital imposed on behalf of a Contracting State, its political subdivisions or local authorities, regardless of the manner in which they are imposed.

2. All taxes imposed on total income or total capital, or on elements of income or elements of capital, are considered taxes on income and capital, including taxes on profits resulting from the transfer of ownership of movable or immovable property, and taxes on total wages and salaries paid by projects, as well as taxes on increasing the value of capital.

3. The current taxes to which this Agreement applies in particular are:

   1. With regard to the State of Kuwait:

      1. Income Tax Decree No. 3 of 1955 amended by Law No. 2 of 2008;

      2. Kuwaiti Income Tax Law in (Designated Area) No. 23 of 1961;

      3. Law No. 19 of 2000 regarding supporting national workers and encouraging them to work in non-governmental agencies;

      (hereinafter referred to as 'Kuwaiti tax')

   2. With regard to the United Arab Emirates:

      1. Income tax;

      2. Corporate tax;

      (hereinafter referred to as 'UAE Tax').

4. This agreement also applies to any identical or substantially similar taxes that are introduced after the date of signing this agreement in addition to or in place of existing taxes. The competent authorities of the two Contracting States shall notify each other of the important changes introduced in their respective tax laws.

Article 3
General Definitions

1. For the purposes of this Agreement, unless the context requires otherwise:

   1. The term 'Person' includes any individual, corporation and any other entity of persons;

   2. The term 'Company' means any legal person or any entity treated as a legal person for tax purposes;

   3. The expressions 'Enterprise of a Contracting State' and 'Enterprise of the other Contracting State' mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;

   4. ''International Carriage' means any carriage by ship or aircraft operated by it, which is located as a management center covering an enterprise of a Contracting State, except where the ship or aircraft is operated only between places in the other Contracting State;

   5. The term 'Kuwait' means the territory of the State of Kuwait and includes any area outside the territorial sea which, in accordance with international law, is or may be determined under the laws of Kuwait as an area in which Kuwait may exercise rights of sovereignty or jurisdiction;

   6. The term 'United Arab Emirates' means the United Arab Emirates, and when used in its geographical context, it means the territories and islands belonging to the United Arab Emirates, which include the territorial sea, maritime zones, economic zone, and continental shelf, over which the United Arab Emirates exercises sovereign rights in accordance with its internal laws and international law. This relates to the exploitation and exploration of natural resources found in seawater, the seabed and the subsoil of these waters;

   7. The term 'Citizen' means, in relation to a Contracting State:

      1. Any individual who has nationality or citizenship of that Contracting State;

      2. Any legal person, partnership or association deriving its status from the laws in force in that Contracting State;

   8. The term 'Tax' means Kuwaiti tax or UAE tax, as the context requires;

   9. The term 'Competent Authority' means:

      1. In the case of the State of Kuwait: the Minister of Finance or a representative authorized by the Minister of Finance;

      2. In the case of the United Arab Emirates: the Minister of Finance or an authorized representative of the Minister of Finance;

2. With regard to the application of this Agreement at any safe time by a Contracting State, any term not defined therein, unless the context of the text otherwise requires, will have the same meaning at that time under the law of that Contracting State with respect to taxes to which this Agreement applies, and any meaning under the tax laws applicable in that Contracting State shall prevail over the meaning given to the term under any other laws of that State.

Article 4
The Resident

1. For the purposes of this Agreement, the term 'Resident of a Contracting State' means:

   1. In the case of the State of Kuwait: an individual who is of Kuwaiti nationality and domiciled in Kuwait, and any company or entity established in Kuwait.

   2. In the case of the United Arab Emirates:

      1. Citizen of the United Arab Emirates;

      2. An individual who, under the laws of the United Arab Emirates, is a resident of the United Arab Emirates or has his usual residence or center of vital interests and whose relationship is closest to the United Arab Emirates;

      3. Any entity or company established in the United Arab Emirates.

2. For the purposes of paragraph (1), the expression 'Resident of a Contracting State' also includes:

   1. The government of that Contracting State or any political subdivision or a local authority thereof;

   2. Any governmental institution established in that Contracting State under public law such as a company, central bank, fund, body, charity, agency or other similar entity;

   3. Any entity established in that State, a political subdivision or an attached authority thereof, or an institution as defined in subparagraph (B), with the participation of similar bodies from third States.

3. Where, in accordance with the provisions of paragraph (1), an individual is a resident of both Contracting States, his status shall then be determined as follows:

   1. He is considered a resident only in the country in which he has a permanent residence. If he has a permanent home in both countries, he is considered a resident only of the country with which he has the closest personal and economic ties (center of vital interests);

   2. If it is not possible to determine the State in which his vital interests are centered, or if a permanent home is not available to him in either State, he shall be deemed to be a resident only of the State in which he has a habitual residence;

   3. If he has an habitual residence in both States, or if he does not have an habitual residence in either of them, he shall be deemed to be a resident only of the State of which he is a national;

   4. If it is not possible to determine his status in accordance with the provisions of paragraphs (a) to (c), the competent authorities of the two Contracting States shall resolve the matter by mutual agreement.

4. Where, in accordance with the provisions of Paragraphs (1) and (2), a person, other than an individual, is considered a resident of both Contracting States, he shall then be deemed to be a resident only of the State in which the actual center of administration is located.

Article 5
Permanent Establishment

1. For the purposes of this Agreement, the term ''Permanent Establishment' means a fixed place of business through which the activity of the enterprise is carried out in whole or in part.

2. The term permanent establishment includes in particular:

   1. Management Center;

   2. Branch;

   3. Office;

   4. Factory;

   5. Workshop;

   6. A farm or any cultivated garden;

   7. A mine, oil or gas well, quarry or any place associated with the exploration or exploitation of natural resources.

3. A building site, construction, assembly or installation project or related supervisory activities carried out in a Contracting State shall be considered a permanent establishment only if such site, project or such activities continue for a period exceeding 6 months.

4. The provision of services, including advisory or administrative services, by an enterprise of a Contracting State through employees or other employees contracted by the enterprise for that purpose in a Contracting State shall be considered a permanent establishment, only if such activities continue for a period or periods totaling more than 3 months within any twelve-month period beginning or ending in the tax year.

5. An enterprise of a Contracting State shall be deemed to have a permanent establishment in the State of the other Contracting State if substantial equipment is used for a period exceeding 3 months during any twelve-month period or installed in that other Contracting State by, for, or under a contract with the enterprise beginning or ending in the tax year.

6. Despite the aforementioned provisions of this Article, the phrase 'Permanent Establishment' does not include the following:

   1. Using facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise;

   2. Maintaining a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or teaching;

   3. Maintaining a stock of goods or merchandise owned by the enterprise solely for the purpose of their manufacture by another enterprise;

   4. Maintaining a fixed place of business solely for the purpose of purchasing goods or merchandise or to collect information, for the enterprise;

   5. Maintaining a fixed place of business solely for the purpose of legitimate business, in the exercise of any other activity of a preparatory or auxiliary nature.

   6. Maintaining a fixed place of business only for any combination of activities mentioned in subparagraphs (a) to (e), provided that the entire activity at the fixed place of business resulting from such combination is of a preparatory or auxiliary nature;

7. Notwithstanding the provisions of Paragraphs (1) and (2) of this Article, if a person other than an agent with an independent status to whom Paragraph (8) applies, works for an enterprise of the other Contracting State, that enterprise will be deemed to have a permanent establishment in the State. The first-mentioned Contracting State, in relation to any activities carried out by that person for the benefit of the enterprise, if one of the following conditions is true, he has and normally exercises in that Contracting State the authority to conclude contracts in the name of that enterprise, unless the activities of that person are limited to those mentioned in Paragraph (6), which, if carried out through a fixed place of business, does not make this fixed place of business a permanent establishment in accordance with the provisions of this period.

8. The enterprise shall not be deemed to be a permanent establishment in the Contracting State merely because the enterprise carries on business in the Contracting State through a broker, commission agent or other agent of an independent status, provided that the conduct of such persons is within the ordinary scope of their business. However, if all or most of the activities of that agent are devoted to the benefit of that project and other projects, in which he controls or has a controlling interest, then he will not be considered an agent with an independent status within the meaning of this paragraph.

9. The fact that a company resident in the other Contracting State is controlled or controlled by a company resident in the other Contracting State or carries on business in that other Contracting State (whether through a permanent establishment or otherwise), that fact does not of itself make either company Permanent establishment of the other company.

Article 6
Income from immovable property

1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be subject to tax in that other State.

2. The expression immovable property shall have the meaning given to it in accordance with the law of the Contracting State in which the property in question is located. In any case, the term includes ownership attached to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law relating to land ownership apply, the right to usufruct immovable property, rights to variable or fixed payments for exploitation or the right to exploit mineral deposits, water sources and other natural resources. Ships, boats, and aircraft are not considered immovable property.

3. The provisions of Paragraph (1) apply to income resulting from the direct use of immovable property or from leasing or exploiting it in any other way.

4. The provisions of paragraphs (1) and (3) also apply to income from immovable property of the project.

Article 7
Business Profits

1. Profits attributable to an enterprise belonging to a Contracting State shall be subject to tax only in that Contracting State unless the enterprise carries on activity in the other Contracting State through a permanent establishment located therein. If the enterprise carries on or is carrying on an activity as mentioned above, tax may be imposed on the profits of the enterprise in that other Contracting State, but only with respect to the part of it that can be attributed to that permanent establishment.

2. Taking into account the provisions of Paragraph (3), whenever an enterprise of one Contracting State carries on an activity in the other Contracting State through a permanent establishment located therein, the profits that it would have made if it were a distinct and independent enterprise carrying on a permanent establishment shall be attributed in each Contracting State, undertaking the same or similar activities under the same or similar circumstances and deals completely independently with the project for which it is considered a permanent establishment.

3. When determining the profits of a permanent establishment, it is permitted to deduct expenses incurred for the project for the purposes of the permanent establishment, including any executive or general administrative expenses thus incurred, whether incurred in the country in which the permanent establishment is located or elsewhere, taking into account any applicable laws or regulations.

4. If it is the custom in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a proportional division of the total profits of the enterprise over its various parts, the provisions of paragraph (2) do not prevent that Contracting State from determining the profits that will be subject to tax on the basis of such a proportional division. What has been concluded is that the proportional division method used must lead to a result consistent with the principles included by custom other than in this article.

5. No profits shall be attributed to a permanent establishment merely because that permanent establishment purchases goods or merchandise for the project.

6. For the purposes of the previous paragraph, the profits attributed to the permanent establishment shall be determined in the same manner year after year unless there is a valid and sufficient reason requiring otherwise.

7. When profits include income elements that are treated separately in other articles of this agreement, the provisions of those articles will not be affected by the provisions of this article.

Article 8
Sea, Air and Land Transportation

1. Profits from the operation of ships or aircraft in international traffic shall be subject to tax only in that Contracting State in which the Arctic management center of the enterprise is located.

2. For the purposes of this Article, profits from operating ships or aircraft in international traffic include the following:

   1. Profits from chartering unmanned ships and aircraft;

   2. Profits from the use, maintenance or rental of containers, as well as vehicles and similar container shipping equipment, which are used to ship goods and merchandise;

      When such rental, use, maintenance or leasing, as the case may be, is related to the movement of ships or aircraft in international traffic.

3. The provisions of Paragraph (1) apply to profits resulting from participation in a union, a joint business, or an international operating agency.

Article 9
Joint Projects

1. When:

   1. An enterprise of a Contracting State contributes directly or indirectly to the management, control or capital of an enterprise of the other Contracting State;

   2. The same persons participate, directly or indirectly, in the management, control or capital of an enterprise of one Contracting State and an enterprise of the other Contracting State, and in either case, if conditions are established or imposed between the two enterprises in their commercial or financial relations that differ from those which are placed between two independent projects, any profits that would have been achieved for one of the two projects if these conditions were present but were not achieved as a result, may be added to the profits of that project and subject to tax accordingly.

2. If a Contracting State includes in the profits of an enterprise of that Contracting State - and subjects it to tax accordingly - the profits of an enterprise of the other Contracting State that are taxable in that other Contracting State and the profits so included are profits that would have been accrued to an enterprise in the first-mentioned Contracting State if the conditions established between the two projects are the same as those normally established between two independent projects, the other contracting state must make the appropriate adjustment to the amount of profits it is subject to tax. When making such an amendment, other provisions of this agreement shall be taken into account, and the competent authorities of the two contracting states shall conduct consultations among themselves if necessary.

Article 10
Dividends

1. Dividends paid by a company resident in a Contracting State to a resident of the other Contracting State shall be subject to tax only in that other State if the resident is the beneficial owner of the dividends.

   This paragraph does not affect the tax to which the company is liable in respect of profits out of which dividends are paid.

2. The term 'Equity Dividends', as used in this article, means income from shares, 'Beneficiary' shares, 'Benefit' rights, mining shares, founders' shares, or other rights, which do not represent debt claims to contribute to profits, as well as income that may be subject to a tax provision such as income from shares in accordance with the laws of the Contracting State of which the company distributing the income is deemed to be a resident.

3. The provisions of paragraph (1) shall not apply if the beneficial owner of the dividends, being a resident of a contracting state, carries on business in the other Contracting State in which the company paying the dividends is a resident, through a permanent establishment located therein, or performs personal services in that other Contracting State. Independent from a fixed position therein and the property on account of which the dividends are paid is effectively linked to this permanent establishment or fixed position. In such a case, the provisions of Article 7 shall apply.

Article 11
Benefit

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State shall be subject to tax only in that other Contracting State who is the beneficial owner of such interest.

2. The term 'Interest,' as used in this Article, means income arising from debt claims of all types, whether or not secured by a mortgage and whether or not they carry the right to contribute to the debtor's profits, and in particular income from government securities and income from bonds or debt securities, including premiums and prizes attached to such securities, bonds or debt securities, as well as income which is subject to tax on income from money lent under the tax law of the Contracting State in which the income arises. Late penalty payments shall not be considered as interest for purpose of this article.

3. The provisions of paragraph (1) shall not apply if the owner who benefits from the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through an establishment dormant in the other Contracting State, and the indebtedness on account of which the interest is paid is effectively connected with that establishment. Permanent, in such a case the provisions of Article 7 shall apply.

4. Interest shall be deemed to have arisen in a Contracting State when the payer of interest is a resident of that State, in any ease if the person paying the interest, whether resident in the Contracting State or not, has a permanent establishment in the Contracting State and the indebtedness in respect of which the interest is paid is related if the permanent establishment is connected to this. If the permanent establishment is connected to this interest, such interest shall then be deemed to have arisen in the country in which the permanent establishment is located.

5. Where it appears, based on a special relationship between the payer and the beneficiary owner of this interest, or between them together and another person, that the value of the interest, taking into account the debt claim for which it is paid, exceeds the value that could have been agreed upon between the payer and the beneficiary owner of this interest in the absence of such a relationship, then the provisions of this Article apply only to the last mentioned value. In such a case, the excess part of the payments shall remain subject to tax in accordance with the laws of each Contracting State, taking into account the other provisions contained in this agreement.

Article 12
Royalties

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be subject to tax in that other Contracting State.

2. However, such royalties may also be subject to tax in the Contracting State in which they arise and in accordance with the law of that Contracting State, but if the beneficial owner of the royalties is infertile in that Contracting State, the tax in shall not exceed 10% of the total value of the royalties. The competent authorities of the two Contracting States shall mutually agree on the method of determining the application of this restriction.

3. The term 'Royalties' as used in this Article means payments of any kind that are received as consideration for the disposition of, or for the use of, or the right to use, any copyrighted literary, artistic, or scientific work, including cinematograph films, work with films, tapes, or any other means of production. Used in connection with television or radio broadcasting or any patent, trademark, design, model, plan, formula, secret production process or information (industry secret related to industrial or commercial expertise or (scientific knowledge).

4. The provisions of paragraphs (1) and (2) shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment situated therein and the right or property in respect of which the royalties are paid is actually related in this permanent establishment, in such a case the provisions of Article 7 shall apply.

5. If it becomes clear, due to a special relationship between the payer and the beneficial owner of these royalties, or between them together and another person, that the value of the royalties, taking into account the use, right or information for which they are paid, exceeds the value that could have been agreed upon between the payer and the beneficial owner in the absence of such a relationship, the provisions of this Article apply only to the last mentioned value. In such a case, the excess part of the payments shall remain taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Agreement.

Article 12 (a)
Technical Services

1. Income from technical services arising in a Contracting State and accrued to a resident of the other Contracting State may be subject to tax in that other State.

2. However, despite the provisions of Article 14 of this Agreement, and taking into account the provisions of Articles 15 and 16 of this Agreement, income from technical services arising in a Contracting State may also be subject to tax in that State in accordance with the laws of that State, but if the beneficiary of this income is a resident of the other Contracting State, the tax imposed shall not exceed 10% of the total amount of income from technical services.

3. The term 'Income from technical services' as used in this Article means any payment for any service of an administrative, technical or consulting nature, unless payment is made:

   1. To an employee of the person making the payment;

   2. Teaching in an educational institution or for teaching by an educational institution;

   3. Or by an individual in exchange for the Services for the individual's personal use;

4. The provisions of paragraphs (1) and (2) of this Article shall not apply if the beneficial owner of the income from technical services, being a resident of a Contracting State, carries on a commercial activity in the other Contracting State in which the income from technical services arises through a permanent establishment located in that other State, or performs in the other Contracting State independent personal services from a fixed base located in that other State and the income from the technical services is effectively connected with such permanent establishment or fixed base. In this case, the provisions of Article 7 or Article 14 of this Agreement shall apply, as the case may be.

5. For the purposes of this Article, taking into account Period (6), income from technical services shall be deemed to have arisen in a Contracting State if the payer is a resident of that State, or if the paying person is, whether that person is a resident of a Contracting State or has it in a Contracting State. A contracting woman with a permanent establishment or fixed base associated with an income-related obligation that she bears.

6. For the purposes of this Article, income from rich services shall not be deemed to arise in a Contracting State if the payer is a resident of that Contracting State and carries on business in the other Contracting State through a permanent establishment situated in that other State or writes to the income from employment there through a fixed base situated in That other State and that permanent establishment or fixed base shall bear the obligation relating to that income.

7. When the amount of technical services is due to a special relationship between the paying party and the beneficial owner, or between them and another person - with regard to the technical services for which payment is paid, the amount that would have been agreed upon between the paying party and the beneficial owner in the absence of that relationship, the provisions of this Article shall be applied only to the last mentioned amount. In such a case, the excess portion of payments remains subject to tax according to the system of each contracting state, taking into account the other provisions of this agreement.

8. The provisions of this Article shall not apply in the case of technical agreements concluded in the two Contracting States or one of their relevant institutions.

Article 13
Capital Profits

1. Profits realized by a resident of a Contracting State from the transfer of ownership of immovable property referred to in Article 6 which are located in the other Contracting State may be subject to tax in that other State.

2. Profits resulting from the transfer of ownership of movable property forming part of the commercial property of a permanent establishment owned by an enterprise of a Contracting State in the other Contracting State, including profits from the transfer of ownership of such a permanent establishment (alone or with the enterprise as a whole), may be subject to tax in that other State.

3. Profits resulting from the transfer of ownership of ships or aircraft operating in the field of international transport, or transferred funds related to the operation of such ships or aircraft, are subject to tax only in the Contracting State in which the actual management center of the project is located.

4. (a) Profits acquired by a resident of a Contracting State from the transfer of shares in a company, partnership or similar interest may be subject to tax in the other Contracting State if, at any time during the period of 365 days preceding the transfer, they are acquired directly or indirectly, more than 50 percent of its value is of immovable property located in that other Contracting State as defined in Article 6 of this Agreement.

   (b) The provisions of Paragraph (A) do not apply to profits resulting from the transfer of ownership of shares of companies that are listed on the stock market of the recognized party in either State.

5. Profits resulting from the transfer of ownership of any property other than those referred to in paragraphs (1), (2), (3) and (4) are subject to tax only in the Contracting State in which the transferor of ownership resides.

Article 14
Income from a job

1. Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other similar remuneration earned by a resident of a Contracting State in connection with employment shall be subject to tax only in that State unless the employment is exercised in the other Contracting State. If the job is carried out in this way, the remuneration earned from the job may be subject to tax in that other country.

2. Notwithstanding the provisions of Paragraph (1), remuneration earned by a resident of a Contracting State in connection with a job exercised in the other Contracting State shall be subject to tax only in the first-mentioned State if all of the following conditions are met:

   1. the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve-month period beginning or ending in the financial year concerned;

   2. The remuneration was paid by or on behalf of a non-resident employer of the other State;

   3. Remuneration shall be borne by a permanent establishment owned by the employer in that State.

3. Notwithstanding the previous provisions of this Article, remuneration earned from a job carried out on board a ship or aircraft operated in the field of international transport is subject to tax only in the Contracting State in which the actual headquarters of the enterprise is located.

4. Ground personnel appointed by the head office of the national airline of a Contracting State in the other Contracting State shall be exempt from taxes imposed on matters in that other Contracting State.

Article 15
Board Members' Fees

Board members' fees and similar payments earned by a resident of a Contracting State in his capacity as a member of the board of directors or of a similar body of a company that is a resident of the other Contracting State shall be taxable only in the first-mentioned Contracting State.

Article 16
Artists and Athletes

1. Notwithstanding the provisions of Article 14, income earned by a resident of a Contracting State in his capacity as an artist such as a theatrical, cinematic, radio or television actor, musician or athlete from his personal activities carried out in that capacity in the other State may be subject to tax in that other State.

2. Where income is due in return for personal activities carried out by an artist or athlete in the aforementioned capacity and that income is not the artist or athlete himself but to another person, such income, notwithstanding the provisions of Article 14, may be subject to tax in the Contracting State in which the activities of the artist or athlete were exercised.

3. The provisions of Paragraphs (1) and (2) shall not apply to income earned by an artist or athlete residing in a Contracting State as a result of his activity in the other Contracting State if the visit to the other State was made with primary support from public funds in the first-mentioned State, including any political subdivision, local authority or legal entity affiliated therewith, nor on income earned by public benefit organizations as a result of such activities, provided that no part of their income is paid or available for personal use for its owners, founders or members.

Article 17
Pensions

Subject to the provisions of Paragraph (2) of Article 18, pensions and other similar remuneration paid to an individual resident of a Contracting State in exchange for previous service shall be subject to tax only in that State.

Article 18
Government Services

1. (a) Wages, salaries and similar remuneration paid by a Contracting State, a political subdivision or a local authority thereof to an individual for services rendered to that State, a political subdivision or a local authority shall be taxable only in that State.

   (b) However, such wages, salaries and similar remuneration shall only be taxable in the other Contracting State if the services are performed in that State and the individual is a resident of that State and one of the following two conditions exists:

   1. The resident must be a national of that country; or

   2. He does not become a resident of that Contracting State solely for the purpose of providing the services.

2. (a) Notwithstanding the provisions of paragraph (1), pensions and other similar remuneration are paid or fall from funds established by a Contracting State, a political subdivision or a local authority thereof to an individual in consideration of services rendered to that State or subdivision or The authority is only taxable in that state.

   (b) However, such pension and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of and a national of that State.

3. The provisions of Articles 14, 15, 16 and 17 shall apply to wages, salaries and other similar remuneration and to pensions relating to the performance of services in connection with work carried on by a Contracting State, a political subdivision or a local authority thereof.

Article 19
Teachers and Researchers

An individual who is, or was, prior to his visit to a Contracting State, a resident of the other Contracting State, and who, at the invitation of the government of the first-mentioned Contracting State or a university, college, school, museum or other cultural institution of the first-mentioned State, or under an official program of cultural exchange, is present in that State. State for a period not exceeding four consecutive years solely for the purpose of teaching, giving lectures, or conducting research in such institutions, he is exempt from tax in that state with respect to remuneration from this activity.

Article 20
Students and Trainees

1. Amounts received by a student or vocational trainee for the purpose of his subsistence, education or training, and who is, or was, prior to his visit to a Contracting State, a resident of the other Contracting State and was present in the first-mentioned State solely for the purpose of his obedience, training, livelihood, study or training, are not subject to tax in that State.

2. Notwithstanding the provisions of Paragraph (1), the remuneration for a student or trainee who is, or was immediately prior to his visit to the Contracting State, a resident of the other Contracting State and who is present in the First-mentioned State solely for the purpose of his education or training derived from temporary services in the first-mentioned State shall be subject to taxes in that State, provided that such services are related to his education or training and that such services are remuneration for those services necessary to supplement the resources available for the purpose of his subsistence.

Article 21
Government Investments

1. Notwithstanding any provision of this Agreement, the investments of a Contracting State in the other Contracting State and the income resulting from these investments (including the income mentioned in Articles 10, 11, 12, 12(a) and 13 of this Agreement), as well as the profits resulting from the transfer of its ownership shall be subject to tax only in the first-mentioned Contracting State. However, the provisions of this Article do not apply to income from immovable property or profits resulting from the transfer of its ownership. The competent authorities in the two Contracting States must settle the method of applying this provision by mutual agreement between them.

2. For the purposes of this Article and with regard to the State of Kuwait, the investments of a Contracting State referred to in Paragraph (1) of this Article mean investments that:

   1. That State or any administrative or political subdivision, local authority, statutory body, agency, instrumentality or public law entity thereof, including:

      1. Central Bank of Kuwait;

      2. Public Authority for Investment;

      3. Public Institution for Social Security;

      4. Kuwait Fund for Arab Economic Development;

      5. Kuwait Airways Corporation;

      6. Kuwait Petroleum Corporation and its subsidiaries and associates;

      7. Capital Markets Authority.

   2. Any entity wholly owned, directly or indirectly, by persons mentioned in subparagraphs (a) or (b) of paragraph (2) of this Article.

   3. Any other similar entity that may be identified and subsequently agreed between the competent authorities of the Contracting States through the exchange of notes.

3. For the purposes of this Article and with regard to the United Arab Emirates, the investments of a Contracting State referred to in Paragraph (1) of this Article means investments made by:

   1. The Central Bank of the United Arab Emirates;

   2. The General Pension & Social Security Authority;

   3. Abu Dhabi Retirement Fund;

   4. Emirates Airlines and its institutions;

   5. Etihad Airways and its institutions;

   6. Abu Dhabi Investment Authority;

   7. Emirates Investment Authority;

   8. Abu Dhabi Investment Council;

   9. Investment Corporation of Dubai;

   10. DP World;

   11. Mubadala Investment Company;

   12. Abu Dhabi National Oil Company;

   13. Abu Dhabi Holding;

   14. Any entity wholly owned, directly or indirectly, by persons mentioned in Paragraph (3) of this Article;

   15. Any other similar entity that may be identified and agreed upon between the competent authorities of the two Contracting States through an exchange of notes.

Article 22
Other Income

1. Items of income of a resident of a Contracting State, wherever they arise, which are not covered by the preceding Articles of this Agreement shall be subject to tax only in that State.

2. The provisions of Paragraph (1) shall not apply to income, other than income from immovable property as defined in Paragraph (2) of Article 6, if the beneficiary of this income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located therein, or performs in that other State independent personal services from a fixed base located therein, and the right or property by reason of which such income is paid is effectively connected with such permanent establishment or fixed base. In this case, the provisions of Article 7 or Article 14 shall apply as the case may be.

Article 23
Capital

1. The capital represented in the immovable property referred to in Article 6 and which is owned by a resident of a Contracting State and located in the other Contracting State may be subject to tax in that State.

2. Capital represented in movable property forming part of a permanent establishment owned by an enterprise of a Contracting State in the other Contracting State may be subject to tax in that other State.

3. Capital represented by ships and aircrafts in the field of international transport, and movable property related to the operation of these ships, aircraft and boats will be subject to tax only in the Contracting State in which the actual management center of the project is located.

4. All other elements of capital owned by a resident of the Contracting State only are subject to that State.

Article 24
Elimination of Double Taxation

1. Taxes shall continue to be determined in accordance with the laws in force in each Contracting State unless there are provisions to the contrary in this Agreement.

2. Double taxation shall be avoided in accordance with the following paragraphs of this article:

   1. In the case of the State of Kuwait:

      When a resident of the State of Kuwait receives income or possesses capital that is in accordance with the provisions of this agreement, it may be subject to tax in both the United Arab Emirates and the State of Kuwait. The State of Kuwait allows a deduction from the income tax on that resident in an amount equal to the amount of the income tax paid in the United Arab Emirates, and a deduction from the capital tax on that resident in an amount equal to the capital tax paid in the United Arab Emirates. Such deduction in either case must be in any case, it does not exceed that portion of the tax on income or capital calculated before giving the deduction that is attributable, as the case may be, to the income or capital on which tax may be imposed in the United Arab Emirates.

   2. In the case of the United Arab Emirates:

      When a resident of the United Arab Emirates earns income or owns capital which, in accordance with the provisions of this Agreement, may be subject to tax in both the State of Kuwait and the State of the United Arab Emirates, the United Arab Emirates allows a deduction from the income tax on that resident in an amount equal to the amount of income tax paid in the State of Kuwait, an amount equal to the capital tax paid in the State of Kuwait is deducted from the capital tax on that resident. Such deduction in either case must, in any case, not exceed that part of the internal tax or capital calculated before giving the deduction attributed according to the case refers to income or capital that may be taxed in the State of Kuwait.

3. For the purposes of allowing the discount to be given in a Contracting State, the tax paid in the other Contracting State shall include the tax imposed in that other Contracting State and which has been canceled or reduced in accordance with laws and procedures for investment incentives established to encourage economic, development in that other Contracting State in accordance with the laws in force in any of the two States.

Article 25
Non-Discrimination

1. Individuals who hold the nationality of a Contracting State shall not be subject in the other Contracting State to any tax or other related obligations that are different from or more burdensome than the tax and related obligations to which individuals who hold the nationality of that other Contracting State are or may be subject in the same circumstances.

2. A tax shall not be imposed on a permanent establishment of an enterprise of a Contracting State in the other Contracting State in a manner that is less favorable than that imposed on enterprises of third States carrying on the same activities under the same circumstances. This provision shall not be construed as requiring a Contracting State to grant to residents of the other Contracting State any personal allowances, exemptions or deductions for tax purposes on account of civil status or family responsibilities which it may grant to its residents.

3. Enterprises of a Contracting State the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall be subject in the first-mentioned Contracting State to any taxes or related obligations which may be different or more burdensome than the taxes and related obligations that may be subject to other similar enterprises the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of any third country.

4. What is stated in this article must not be interpreted as placing a legal obligation on a contracting state to include residents of the other contracting state with the benefit of any treatment, preference or privilege that may be granted to any third state or its residents pursuant to the formation of a customs union, economic union or region, free trade or any regional or sub-regional arrangement relating wholly or essentially to taxation or the movement of capital to which the first-mentioned Contracting State may be a party.

5. The term 'Tax' in this Article means the taxes that are the subject of this agreement.

Article 26
Mutual Agreement Procedures

1. When a person becomes aware that the actions of one or both Contracting States lead, or will lead to the imposition of taxes on him that are inconsistent with the provisions of this Agreement, he may, regardless of the remedial measures stipulated in the domestic laws of those States, submit the case to the competent authority in one of the two contracting states, and the case must be presented within three years from the first notification of the action that led to the imposition of taxes in violation of the provisions of the agreement.

2. If the objection appears to be justified and it is unable to reach a satisfactory solution on its own, the competent authority shall endeavor to settle the issue by mutual agreement with the competent authority of the other Contracting State with a view to avoiding the imposition of a tax inconsistent with the Agreement. Any agreement reached shall be implemented despite any time limits contained in the local regulations of the two Contracting States.

3. The highest competent authorities of the two Contracting States shall endeavor, through mutual agreement, to reduce any difficulty or address any doubt arising in connection with the interpretation or application of this Agreement. It is also permissible for them to consult together to eliminate double taxation in cases not mentioned in the agreement.

4. The two competent authorities in the two Contracting States may communicate with each other directly, including communication through a joint body composed of them or the security of their representatives, assuming an agreement is reached regarding the previous paragraphs.

Article 27
Exchange of Information

1. The competent authorities of the two Contracting States must exchange information that is expected to be relevant to the implementation of the provisions of this Agreement or to the administration or implementation of local laws relating to all types and forms of taxes imposed by the two Contracting States, or their political subdivisions or local authorities, as long as those taxes do not Contrary to this Agreement, the exchange of information is not restricted by Articles 1 and 2 of this Agreement.

2. Any information received in accordance with Paragraph (1) by a Contracting State will be treated confidentially, as is the case for information obtained in accordance with the domestic laws of that State and will be disclosed only to persons or authorities (including the courts and administrative bodies relating to assessment, collection, enforcement or arbitration in accordance with the determination of the tax-related appeal referred to in Paragraph (1) - and based on the above, these persons or authorities will use this information only for those judicial decisions.

3. Under no circumstances may the provisions of the two paragraphs be interpreted to lead to the obligation of a contracting state to:

   1. Carry out administrative measures in contravention of the laws and administrative practices of that other Contracting State;

   2. Provide information that cannot be obtained under the usual laws or administrative systems of that State or of the other Contracting State;

   3. Provide information that leads to the disclosure of a secret related to a trade, business, industry, professional secret, commercial operations, or information whose disclosure might be contrary to public policy (public order).

4. If the information is required by a Contracting State in accordance with this Article, the other Contracting State shall use its own means of collecting information to obtain the required information, even if that other State may not need that information for its tax purposes. The obligation contained in the previous sentence is subject to restrictions of Paragraph (3). However, in no case may these restrictions be interpreted to permit a contracting state to refrain from providing information simply because that state does not have a domestic interest in it.

5. In no case may the provisions of paragraph (3) be construed as permitting a Contracting State to refrain from transmitting information simply because it is held by a bank or other financial institution or by a commissioner or a person acting under an agency or fiduciary capacity or because it is linked to shares related to ownership of somebody.

Article 28
Miscellaneous Provisions

1. The provisions of this Agreement shall not be construed as restricting in any case any exception, exemption, reduction, deduction or other deductions granted now or hereafter under the laws of a Contracting State in connection with the determination of tax to be lent by that State either:

   1. Under the laws of a Contracting State in relation to the determination of the tax to be levied by that State;

   2. Under any other agreement relating to taxes within the framework of economic and technical cooperation between the two Contracting States or between one of the Contracting States and residents of the other Contracting State.

2. The competent authorities in each of the two contracting states have the right to establish systems to implement the provisions of this agreement.

Article 29
Entitlement to Benefits

Notwithstanding the other provisions of this Agreement, no benefits shall be granted under this Agreement in relation to if it would be reasonable to grant them, having regard to all relevant facts and circumstances, which indicate that obtaining such benefits was one of the principal purposes of any arrangement came, directly or indirectly, to benefit from those benefits unless it is demonstrated that the granting of those benefits in the circumstances is consistent with the intent and purpose of the relevant provisions of this Agreement.

Article 30
Members of Diplomatic Missions and Consular Bodies

Nothing in this Agreement shall affect the financial privileges granted to members of diplomatic missions, consular environments or employees of international organizations under general rules of international law or under the provisions of special agreements.

Article 31
Enforcement

1. Each of the two Contracting States shall notify the other in writing of the completion of the constitutional procedures for the entry into force of this Agreement. This Agreement shall enter into force from the date of receipt of the last two notifications, and its provisions shall apply in both Contracting States.

2. The provisions of this agreement shall apply:

   1. In respect of taxes deducted at source on amounts paid or deducted on or after the first day of January of the calendar year immediately following the year in which the agreement enters into force;

   2. In respect of other taxes, for tax periods beginning on or after the first day of January of the calendar year immediately following the year in which this Agreement enters into force.

Article 32
Term and Termination

This Agreement shall remain in force for a period of five years and shall thereafter continue in force for a similar period or periods unless one of the Contracting States notifies the other State in writing at least six months before the expiry of the initial period or any subsequent period of its intention to develop this Agreement. In such a case, the agreement shall cease to apply in both Contracting States:

1. In respect of taxes withheld at source on the amount paid or deducted on or after the first day of January of the year following that in which the termination framework is provided;

2. In respect of other taxes, for tax periods beginning on or after the first day of January of the year following that in which the notice of termination is given.

This shall be attested by each of the commissioners of the contracting state that has signed this agreement.

Written in Dubai on this first day of the month of Shaban 1445 AH, corresponding to the eleventh day of February 2024, in two original copies in the Arabic language.