Correcting a Kuwait DMTT return

The situation

An incorrect return draws 25% of the difference if it exceeds 10% of the final tax, reducible to 10% if the taxpayer notifies the authority.

The law

• DMTT Law: penalties: Late return 5% to 25% of tax; late payment 1% per 30 days; incorrect return 25% of the difference if over 10% (10% if self reported); KWD 3,000 fine for listed failures

What it means for you

If the error exceeds 10% of the final tax, the penalty is 25% of the difference, cut to 10% if you notify the authority yourself. Quantify the error, notify promptly and pay the difference. Document the cause.

What to do

1. Quantify error.
2. Notify authority.
3. Pay difference.
4. Document.

Related

• Transfer pricing disclosure form
• Kuwait DMTT return due date
• Audit of the Kuwait DMTT return
• Advance payments under Kuwait DMTT
• Safe harbours in Kuwait DMTT
• Audited standalone accounts with the return