Japan and Kuwait have agreed in principle to conclude a tax treaty to promote investment and economic exchanges between the two countries, the Finance Ministry said Tuesday.
Kuwait is the first Middle Eastern oil-producing country to conclude such a treaty with Japan.
The treaty will stipulate rules for avoiding double taxation on companies and reducing taxation on stock dividends and other investment income.
It will go into effect after it is signed by the Japanese and Kuwaiti governments and approved by the Diet.
Japan is in negotiations to conclude similar treaties with the United Arab Emirates and Saudi Arabia, among other Middle Eastern countries.