(L-R): Jasem Mohamed Albudaiwi, ambassador of Kuwait; Pierre Gramegna, Minister of Finance; Credit: MFIN

Luxembourg's Ministry of Foreign and European Affairs, together with the Ministry of Finance, has confirmed that, on Thursday 25 March 2021, Luxembourg and Kuwait have signed an aviation agreement as well as an addendum amending the tax treaty between Luxembourg and Kuwait.

The aviation deal was signed by Luxembourg's Foreign and European Affairs Minister, Jean Asselborn, and Kuwaiti Ambassador, Jasem Mohamed Albudaiwi. Minister Asselborn welcomed the signing of this agreement, which illustrates the will of Luxembourg and Kuwait to strengthen their bilateral relations in general and their economic and trade relations, in particular. The ratification of this aviation agreement will in particular provide a new regulatory framework for the activities of Cargolux, which currently operates a weekly flight via Kuwait.

The bilateral relations between Kuwait and Luxembourg are excellent and I am optimistic that the agreements we are signing today will deepen them. I hope that we can soon resume the high-level bilateral visits which have not been possible recently due to the pandemic", underlined Minister Asselborn. The head of Luxembourg's diplomacy also highlighted the constructive role played by Kuwait as a mediator in the Middle East and in the Gulf region, as well as its important contribution in the humanitarian field.

Luxembourg's Minister of Finance, Pierre Gramegna, and the Ambassador of Kuwait then proceeded to the signature of an amendment which will modify the convention between the two countries, tending to avoid double taxation, signed in Luxembourg on 11 December 2007. The signature of this agreement will allow Luxembourg to begin the procedure for ratifying the tax treaty and through this agreement, Luxembourg continues to update its network of double taxation agreements with the provisions combating the erosion of the tax base and profit shifting.

Minister Gramegna commented "I welcome the signing of this new rider between Luxembourg and Kuwait, which will bring the tax treaty between our two countries to the best international standards in terms of information exchange and will notably integrate the resulting provisions of the OECD BEPS action plan, thus taking into account the commitments made by Luxembourg at international level. Compliant with the latest standards in terms of tax transparency and the fight against tax evasion, this Convention will lay the foundations for further collaboration between our two countries and will greatly facilitate two-way investments. During my exchange with the ambassador, we were also able to highlight avenues for developing synergies in the field of sustainable finance."