Zakat (Kuwait)

Kuwait's 1% levy on the net profit of Kuwaiti shareholding companies, listed and closed, under Law No. 46 of 2006.

In Arabic: الزكاة (الكويت)

Meaning

Law No. 46 of 2006 charges Zakat at 1% of the net profit of Kuwaiti shareholding companies, whether listed or closed. It is collected by the Ministry of Finance and worked out on net profit as the law's executive rules define it, so the base is not always the bottom line of the income statement.

A limited liability company (W.L.L.) is not a shareholding company and does not pay it. A company that converts to a shareholding company comes within it, and one listed on Boursa Kuwait pays the NLST as well. For a multinational group within the Domestic Minimum Top-up Tax from 2025, the Ministry says the top-up tax replaces it.

Also called: Kuwait Zakat law · Zakat on shareholding companies Kuwait

Example

A Kuwaiti closed shareholding company has KWD 500,000.000 of net profit as the Zakat rules define it. Its Zakat is 1%, KWD 5,000.000. Al Safat Trading W.L.L., a limited liability company, pays none.

Where it is used

In Aqid ERP: Accounting & reportsSource: Ministry of Finance: Executive rules of Law No. 46 of 2006 on Zakat

Related terms

Ministry of Finance (Kuwait tax administration)NLST (National Labour Support Tax)Income tax (Kuwait)All terms

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