ARTICLE 2
Taxes Covered
(1) This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or its local authorities, 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, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
(3) The existing taxes to which this Agreement shall apply are, in particular:
- (a) in the case of the Islamic Republic of Iran:
- (i) the income tax; and
- (ii) the property tax;
- (hereinafter referred to as "Iranian tax");
- (b) in the case of the State of Kuwait:
- (i) the corporate income tax;
- (ii) the contribution from the net profits of the Kuwaiti shareholding companies payable to the Kuwait Foundation for Advancement of Science (KFAS);
- (iii) the Zakat; and
- (iv) the Tax Subjected according to the Supporting of National Employees Law;
- (hereinafter referred to as "Kuwaiti tax").
(4) This Agreement shall apply also to any identical or substantially similar taxes which are imposed under the laws of a Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws.