Taxes - Accounting

Kuwait

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Tax Rates | Accounting Rules

Tax Rates

Corporate taxes

Tax rate

Corporate Income Tax for foreign companies

Flat rate of 15%

Capital gains taxation: Capital gains obtained by a foreign shareholder are considered regular revenues and are subject to the current tax rate.
Main allowable deductions and tax credit: Deductions for depreciation, net operating losses, some custom duties, head office expenses.
Other corporate taxes: Social security contributions, Zakat, contributions to KFAS, National labor support tax (NLST).

Individual taxes

Tax rate

Individual Income Tax	As a rule, all individuals (residents, non-residents) do not pay income taxes in Kuwait, but a project of Tax Levy Act has been presented to the National Assembly.
From KWD 0 to 2,000	5%
From KWD 2,001 to 10,000	10%
From KWD 10,001 to 50,000	15%
From KWD 50,001 to 250,000	20%
From KWD 250,001 to 1,000,000	25%
More than KWD 1,000,000	30%

Allowable deductions and tax credit: The fixed deductions foreseen within the framework of the project of the Tax Levy Act are as follows:
- Fixed deduction of 6,000 KD for singles.
- 7,000 KD for married individuals without dependent children.
- 8,400 KD for married couples with a dependent child.
- 600 KD for every additional dependent child.
Special expatriate tax regime: As a rule, foreign individuals are not subject to pay income tax in Kuwait, but a new project of Tax Levy Act is being elaborated. It should provide a choice of place, in case that taxes have already been paid in their country of origin. Kuwait has signed several agreements against double taxing.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: List of countries having a fiscal agreement with Kuwait.
Withholding taxes: Dividends: 0%, Interest: 0%, Royalties: 0%
These incomes are treated as ordinary business incomes.
Bilateral agreement: Kuwait and Tunisia are bound by a double taxation treaty: yes

Signed	Ratified	Enforced
18/04/2000	Law 00-16 of 16/04/01	-

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Ministry of Finance of Kuwait
Other domestic resources: Guide to International Taxation.
Taxation for companies in Kuwait.

Accounting Rules

Tax year: From January 1st to December 31.
Accounting standards: There is not a mandatory accounting system required in Kuwait. However, companies are asked to respect the International Financial Reporting Standards. Projects of harmonization and unification of an accounting system and its presentation are being discussed at the Gulf Cooperation Council.
Accounting regulation bodies: Public Authority for Industry.
Stock Exchange of Kuwait.
Accounting reports: All commercial companies of Kuwait are required to keep several accounting books every year. These must be written in Arabic:
- Sales Journal
- Inventory
- General Ledger
- Expenditures Analysis Book
- Stock Shares Evolution Reports
In order to create a financial analysis, companies are required to generate a balance sheet and a profit and loss report, which have to be submitted to the Ministry of Commerce and Industry for its evaluation no later than three months after the end of the fiscal year.
Publication requirements: The companies wishing to enter in the stock market of Kuwait are required to provide accounting publications. They must have published their audited accounting reports for the last two years prior to their introduction into the stock market. These financial statements must show their structure and their net profits. Still, the Council of Directors of the Stock Exchange of Kuwait can request other elements before giving its approval. All companies quoted on the Stock Market of Kuwait must publish their audited financial statements with their complete balance sheet and the profit and loss report no later than three months after the end of the fiscal year. They must also publish their periodical statements no later than two months after the end of their fiscal period.
Professional accountancy bodies: Association of Accountants and Auditors of Kuwait.
Directory of Accountants and Auditors in Kuwait.
Certification and auditing: The certification and the control of accounts have to be made by an organization independent from the company, certified and registered at the Ministry of Commerce and Industry. The process of certification and control of accounts are ruled by the Law No. 5 of 1981. You can contact an external auditor: Deloitte, Ernst & Young, PricewaterhouseCoopers, KPMG.
Accounting news: IAS Plus
Association of Accountants and Auditors of Kuwait
Article describing the Accounting System in Kuwait.