Aqid ERPKuwait tax and payroll glossary
The terms a Kuwaiti business meets with the Ministry of Finance, the PIFSS and PAM, each with its meaning, a worked example in dinars and the pages where it is used. Kuwait has no VAT. In Arabic and English.
E
- End-of-service indemnity (Kuwait)What Kuwait's Labour Law owes a worker on leaving: 15 days' pay a year for five years, a month a year after, capped.
I
- Income tax (Kuwait)Kuwait's 15% tax on the net income of foreign companies, worked out on a foreign partner's share of the profit.
M
- Ministry of Finance (Kuwait tax administration)Kuwait's tax administration: it collects income tax on foreign companies, Zakat, the NLST and the top-up tax.
N
- NLST (National Labour Support Tax)Kuwait's 2.5% tax on the net profit of Kuwaiti and GCC companies listed on Boursa Kuwait, under Law No. 19 of 2000.
P
- PAM (Public Authority for Manpower, Kuwait)Kuwait's labour authority: it applies the private-sector Labour Law and suspends the file of an employer that does not pay wages.
- PIFSS (Public Institution for Social Security)Kuwait's social security for Kuwaiti nationals: monthly contributions from employee and employer, in layers with ceilings.
T
- Tax clearance certificate (Kuwait)The Ministry of Finance's certificate that a company owes no tax, which releases the 5% held back from contract payments.
Z
- Zakat (Kuwait)Kuwait's 1% levy on the net profit of Kuwaiti shareholding companies, listed and closed, under Law No. 46 of 2006.
Related
Aqid ERP in Kuwait
Set up for Kuwait's rules from the first day.
- Plans from 6.5 د.ك a month
- No VAT
- PIFSS
- Indemnity (Art. 51)