Kuwait flag Kuwait: Entorn econòmic

Impostos a Kuwait

Tax Rates

Consumption Taxes

Nature of the Tax
Kuwait is required to introduce a VAT regime under a common decision that applies to all Gulf Cooperation Council member countries. Nonetheless, the National Assembly of Kuwait unilaterally decided to postpone the introduction of VAT until April 2021, but it has not been implemented yet.
Tax Rate
5% (when VAT will be implemented)
Reduced Tax Rate
Not applicable
Other Consumption Taxes
The National Assembly of Kuwait decided, in May 2018, to accelerate the phasing-in process of excise duties on certain products including tobacco products, energy drinks and carbonated beverages; however, the exact date is yet to be determined.
 
Find out more about Taxes and Accounting in Kuwait on GlobalTrade.net, the Directory for International Trade Service Providers.
 

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Corporate Taxes

Company Tax
15%
Tax Rate For Foreign Companies
Only companies with foreign ownership are subject to corporate income tax in Kuwait on their Kuwait-sourced income.
Branches are also taxed at 15%.
Capital Gains Taxation
Capital gains on the sale of assets and shares are considered ordinary income and subject to the standard tax rate of 15%. Exemptions are available for profits generated from dealing in securities on the Kuwait stock exchange.
Main Allowable Deductions and Tax Credits
Documented expenses incurred to generate or maintain an income are generally deductible.
Amortisation of tangible and intangible assets is tax-deductible at rates ranging from 4% to 33.33%. Goodwill cannot be amortised for tax purposes.
Start-up fees incurred before the signing of a contract are not eligible for a deduction. Interest charges are only deductible if they relate to transactions in Kuwait and are paid to a local bank.
Bad debts may be deducted if they relate to transactions in Kuwait and a final decision is made by a court of competent jurisdiction over the dispute.
Donations to recognised Kuwaiti charitable organisations are deductible.
Head office expenses are deductible up to 1.5% of income earned in Kuwait after deducting any share of subcontractors. Payments made by the head office to foreign subsidiaries for the supply of goods, design costs and consulting services are also deductible. Provided certain conditions are met, subcontract costs can be deducted.
Tax losses can be carried forward for up to three years. The carryforward of losses is prohibited in the following cases: 1) the tax return does not include any income earned in Kuwait; 2) change in the legal structure of the company; 3) the merger of the company with another entity; 4) liquidation or disposal of the business in Kuwait. The carryback of losses is prohibited.
Other Corporate Taxes
Social security contributions payable by the employer amount to 11.5% of salary (capped at KWD 2,750 per month). Employers are not required to contribute to the social security scheme for their expatriate employees.
Publicly-traded corporations pay an employment support tax of 2.5% of their net profits to support employment in the private sector.
Kuwaiti joint-stock companies (listed and unlisted) pay 1% of their net profit to pay the Zakat (religious tax) or contribute to the state budget. They are also liable for a tax equal to 1% of their profit (after the transfer of reserve funds and carryforward of tax losses) to finance the Kuwait Foundation for the Advancement of Sciences.
Payments from a contractor/subcontractor that are yet to settle their tax liabilities with Kuwaiti authorities and obtain a certificate should be withheld at a rate of 5%.
No property or transfer taxes are levied in Kuwait.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Kuwait Middle East & North Africa United States Germany
Number of Payments of Taxes per Year 12.0 20.8 10.6 9.0
Time Taken For Administrative Formalities (Hours) 98.0 204.0 175.0 218.0
Total Share of Taxes (% of Profit) 13.0 32.1 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

No income taxes are currently imposed on individuals in Kuwait
Allowable Deductions and Tax Credits
Not applicable
Special Expatriate Tax Regime
Not applicable

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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.

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Find out more about Taxes and Accounting in Kuwait on GlobalTrade.net, the Directory for International Trade Service Providers.

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Actualitzacions: April 2022

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