Kuwaiti Decree to Avoid Double Taxation and Prevent Financial Evasion with Iraq, 23 SEPT

  Kuwaiti Decree to Avoid Double Taxation and Prevent Financial Evasion with Iraq

9/22/2024

Kuwait announced the issuance of a decree approving an agreement with Iraq aimed at avoiding double taxation and preventing financial evasion with regard to taxes on income and capital.

The Saudi "Argaam" Agency reported that the explanatory memorandum came out of a desire to strengthen mutual economic relations between the governments of Kuwait and Iraq, as the agreement was signed to avoid double taxation and prevent financial evasion.

Article (1) of the agreement indicated that it applies to persons residing in one or both of the contracting states, while Article (2) stipulated the taxes covered by this agreement.

The agreement includes a definition of dividends, which means income from shares, beneficial ownership, founders' shares or other rights not representing debt claims, as well as participation in profits. It also includes income from other corporate rights, such as income from shares, according to the laws of the Contracting State of which the company distributing the income is a resident.

The agreement stipulated the necessity of exchanging confidential information between the competent authorities in the two countries, related to the implementation of the provisions of this agreement.

In addition, the agreement excluded income derived by a resident of a Contracting State as a theatre, cinema, radio, television, or musical artist, or as a sportsperson, as these categories may be subject to tax in the other Contracting State.  LINK

LATEST FROM FNU LNU, 23 SEPT

  Fnu Lnu

   Exchange Centers are off premises bank facilities to prevent excess traffic at bank branches. It is illegal to have different rates at different places. Remember the Law of One Price.

Fnu Lnu 

 I do not buy this "Education Program" nor do I buy the "Adjusting of the Parallel Market". The education is taking too long to be effective and it isn't government's job to adjust black markets. These are stall tactics while they placate the masses.  But why?...

  When you drag out the "Education" as long as the GOI and CBI has been doing, nothing sticks. If it is not in practice, then it is just words from the mouths of bureaucrats. Iraq has had more than enough of that and they do not pay attention.

 They will become educated when it means something to them, like the cost of goods and services, and buying power, and velocity of money. This is all obfuscation and I don't believe a word of it. Logic tells me they are stalling the people.

The $64,000.00 dollar question is why? What's the real plan?

https://dinarevaluation.blogspot.com/2024/09/latest-from-fnu-lnu-19-sept.html

IRAQ'S CURRENCY REFORM : DELETING ZEROS IN 2024

DINAR REVALUATION REPORT: Central Bank of Iraq's Plan to Remove Zeros from the Dinar, 23 SEPT

 Central Bank of Iraq's Plan to Remove Zeros from the Dinar

As of September 22, 2024, the Central Bank of Iraq is studying the feasibility of removing zeros from the Iraqi dinar. 1  3 This move is part of a strategic plan aimed at simplifying financial transactions and reducing transaction costs, which was first announced in 2011. 3 The plan, once complete, will be passed to the ministerial council and Parliament for approval. 3

Reasons for Removing Zeros

The primary reason for deleting zeros from the currency is to combat inflation and enhance confidence in the national currency. 4 This process can simplify accounting operations and financial transactions, potentially improving the country's image before investors and the international community. 4

Potential Challenges

Removing zeros from the currency involves challenges such as printing new currency, modifying accounting systems, and training people on how to use the new currency.  4 This process may initially cause confusion among residents and consumers and requires careful planning to avoid economic disruptions. 4

Precedents

Countries like Turkey, Brazil, Zimbabwe, and Venezuela have previously removed zeros from their currencies. 4 For example, Turkey removed six zeros from its currency in 2005, Brazil undertook similar measures in the 1980s and 1990s, Zimbabwe removed twelve zeros in 2009, and Venezuela removed five zeros in 2018. 4

Impact of Removing Zeros on Balances in America

The removal of zeros from the dinar does not indicate any restrictions on the Central Bank of Iraq's balances in America. 1  However, the effects on international transactions and the dinar's exchange rate will depend on how well the process is executed and the state of Iraq's economy at the time of implementation. 4

Conclusion

The Central Bank of Iraq's plan to remove zeros from the dinar is a significant step toward simplifying financial transactions and enhancing the currency's stability. However, careful planning and execution are necessary to ensure the process is successful and does not lead to economic disruptions.

Central Bank of Iraq: We are studying removing zeros from the dinar and there are no restrictions on our balances in America, 23 SEPT

 9/22/2024

The Central Bank of Iraq reduced, on Sunday, its reliance on the US dollar in commercial transactions, adding that the project to remove zeros in Iraq is under continuous review and study.

Countries remove zeros from their currency to revalue their national currency and simplify financial transactions. This is done by removing a specific number of zeros from the nominal value of the currency, making it appear less inflationary and more stable.

In this context, the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, confirmed that the Central Bank responded to global economic challenges such as rising energy and raw material prices, by amending some monetary policies in line with the international situation and to enhance confidence in the Iraqi dinar and prevent a sharp decline in its value.

Al-Alaq added that the Central Bank of Iraq increased its holdings of foreign exchange and gold reserves to enhance the country's financial position and stability, in order to enhance its ability to confront potential economic crises.  LINK

RV UPDATE BY NADER FROM MID EAST: " THEY'RE GOING TO REMOVE THE 3 ZEROS SOON", 23 SEPT

 Nader From The Mid East  

 They're going to remove the 3 zeros soon... In 1990 Kuwait did the same thing...If you go back in that time and you find the article, you can read it, it's the same article come out, the big bills are going to be the same than the small bills...25,000 dinars they're going to count like 25.  

What they did was the opposite, the whole opposite, the 25,000 become 25,000.  They stayed 25,000.  

When you go change your money [Iraqi dinars] this is what's going to having...You'll have three weeks to find a way to exchange your money to small category dinar.  Once you change your money to small categories you guys safe.  That's how it's going to work..

CBI's New Banking Guidelines: What You Need to Know!