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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.


Taxes Covered

(1) This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State, of a Land or a political subdivision or local authority thereof, irrespective of the manner in which they are levied.

(2) There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital appreciation.

(3) The existing taxes to which the Agreement shall apply are in particular:

  • (a) in the Federal Republic of Germany:
    • (i) the Einkommensteuer (income tax);
    • (ii) the Koerperschaftsteuer (corporation tax);
    • (iii) the Vermoegensteuer (capital tax); and
    • (iv) the Gewerbesteuer (trade tax);
  • (hereinafter referred to as "German tax");
  • (b) in the State of Kuwait:
    • (i) the corporate income tax;
    • (ii) the 5 per cent of the net profits of shareholding companies payable to the Kuwait Foundation of Advancement of Science (KFAS);
    • (iii) the Zakat;
  • (hereinafter referred to as "Kuwaiti tax").

(4) The Agreement shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. At the end of each year, the competent authorities of the Contracting States shall-if necessary-notify each other of changes which have been made in their respective taxation laws.