Tax
From The Report: Kuwait 2013
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This chapter, written in conjunction PKF Bouresli, provides a detailed review of the rules and regulations that are applicable to foreign entities doing business in Kuwait. This chapter also contains an interview with Tariq M Bouresli, Managing Partner, PKF Bouresli.

Articles from this Chapter

Overview

A detailed review: Rules and regulations for local tax law
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A. OVERVIEW: A number of taxation regulations and related laws are applicable to foreign entities doing business in Kuwait and include: • Corporate Income Tax (CIT) Decree No 3 of 1955 as amended by Law No 2 of 2008; • Zakat Law No 46 of 2006; • Contribution to the Kuwait Foundation for the Advancement of Sciences (KFAS); • National Labour Support Tax No 19 of 2000, which regards taxes for listed companies; • Social Security Law No 61 of 1976; and • Law No 23 of…

Analysis

CURRENT TAX TRENDS:
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The tax environment in Kuwait and in the rest of the Middle East and North Africa region is different from the rest of the world. Taxation in Kuwait consists primarily of corporate income tax, which is governed by Decree No 3 of 1955 as amended by Law No 2 of 2008. The law does not impose taxes on income earned by individuals, whether they are Kuwaiti or foreign nationals. Kuwaiti financial entities are also not subject to corporate taxation. Only a foreign corporate body engaged in commercial or trade activities in Kuwait is subject to income tax. The former tax rates under a prior decree ranged from 5% to 55%. In 2008 Kuwait amended…