Tax Planning in Kuwait

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:
1.	Wholly Kuwait-owned businesses are tax-free. Foreign companies are liable to pay corporate tax if they conduct business in Kuwait.
2.	Tax planning in Kuwait should also consider the fact that Kuwait has a limited network of double tax agreements with other countries.
3.	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.
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.
	i) from 0 to 5,250 Kuwait Dollars(US$19,500): 0%;
	ii) between 5 250 (US$19,500) to 18,750 KD(US$69,663): 5%;
	iii) between 18 751 (US$69,678) to 37 500 KD (US$139,348): 10%;
	iv) between 37 501 (US$139,335) to 56 250 KD (US$208,997): 15%;
	v) between 56 251 (US$208,996) to 75,000 KD (US$278,657): 20%;
	vi) between 75 001 (US$278,660) to 112,000 KD (US$416,129): 25%
	vii) between 112 001 (US$416,129) to 150,000 KD (US$557,310): 30%;
	viii) between 150 001 (US$557,313) to 225,000 KD (US$835,965): 35%
	ix) between 225 001 (US$835,969) to 300,000 KD (US$1,114,620): 40%
	x) between 300 001 (US$1,114,623) to 375,000 KD (US$1,393,275): 45%
	xi) more than 375,000 KD (US$1,393,275): 55%.
4.	Dividends are not taxed in Kuwait, another point to consider when undertaking coherent tax planning in Kuwait.
5.	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.
6.	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.

Buy a copy of the Healy Consultants' Asia Business Set Up book for US$1000, to order call +65 6735 0120 or e-mail info@healyconsultants.com