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Tax planning in Kuwait is relatively simple compared with most jurisdictions. It is essentially a 'no-tax' jurisdiction with relatively simple tax laws compared to many 'onshore' jurisdictions. When undertaking any tax planning in Kuwait, it is important to note the following: |
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Wholly Kuwait-owned businesses are tax-free. Foreign companies are liable to pay corporate tax if they conduct business in Kuwait. |
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Tax planning in Kuwait should also consider the fact that Kuwait has a limited network of double tax agreements with other countries. |
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Coherent tax planning in should also take into consideration the Kuwait Tax rate for resident companies. |
The tax rate is progressive on 11 brackets from 0 to 55%. It affects only foreign companies. |
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Within the framework of a joint-venture, the initial foreign contracting party will be subjected to the corporate tax in proportion to its contribution in capital. |
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Tax planning in Kuwait should also take into consideration that Kuwaits' tax rate on long-term capital gains- capital gains are considered as normal business profits and are subject to tax at the normal rates. |
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Dividends are not taxed in Kuwait, another point to consider when undertaking coherent tax planning in Kuwait. |
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When undertaking tax planning in Kuwait investors should note the tax rate on branches is levied on branches in Kuwait in the same way as any others companies. |
Contact Us For more information on tax planning in Kuwait, email email@healyconsultants.com or telephone Healy Consultants at +(65) 6735 0120. Back to Kuwait Company Formation page. |
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