Aqid ERPMeaning
The Income Tax Decree of 1955, as amended by Law No. 2 of 2008, charges a flat 15% on the net taxable income of a body corporate carrying on business in Kuwait. A company wholly owned by Kuwaiti nationals does not pay it; where a foreign company is a partner in a Kuwaiti company, the tax is worked out on the foreign partner's share of the profit.
A taxpayer registers with the Ministry of Finance within 30 days of starting the activity. The declaration is due by the 15th day of the fourth month after the tax period ends, and the tax is paid at once or in four equal instalments. Filing or paying late costs 1% of the tax for each 30 days, or part of 30 days, of delay.
Also called: Kuwait corporate income tax · corporate tax Kuwait · tax on foreign companies Kuwait
Example
Al Safat Trading W.L.L. makes KWD 100,000.000 of net profit, and a foreign company holds 40%. The tax is 15% of KWD 40,000.000, KWD 6,000.000, declared by 15 April for a calendar year; the Kuwaiti partners' 60% is not taxed.