Aqid ERPMeaning
In Kuwait the Ministry of Finance (وزارة المالية) administers the taxes on companies: the 15% income tax on foreign companies under the Income Tax Decree of 1955 as amended by Law No. 2 of 2008; Zakat at 1% on Kuwaiti shareholding companies; the National Labour Support Tax at 2.5% on companies listed on Boursa Kuwait; and, from 2025, the Domestic Minimum Top-up Tax for multinational groups.
Kuwait has issued no VAT law and no excise law, and individuals pay no income tax, so a small company wholly owned by Kuwaiti nationals usually deals with the Ministry only for a tax clearance certificate. A foreign partner, a conversion to a shareholding company or a listing brings it within the Ministry's taxes.
Also called: Kuwait Ministry of Finance · MOF Kuwait · Kuwait tax authority
Example
Al Safat Trading W.L.L., wholly owned by Kuwaiti nationals and unlisted, pays no income tax, Zakat or NLST. When a government client holds back 5% of its contract payments, it asks the Ministry, through Kuwait Government Online, for a clearance certificate.