Deemed profit assessments
The authority wants to tax us on deemed profit. What is that?
The situation
Where support is inadequate, tax can be assessed on deemed profit as a percentage of turnover based on business type.
The law
- Income Tax Law practice: deemed profit assessments: Where support is inadequate the authority may assess tax on deemed profit as a percentage of turnover
What it means for you
Deemed profit is a percentage of turnover set by business type, used where records do not support the declared profit. It can exceed real profit. The defence is strong cost evidence, and you can object within 60 days of the assessment.
What to do
- Gather cost evidence.
- Compare deemed and actual profit.
- Object within 60 days.
- Improve records.
We can do this for youAnnual income tax declaration, payment and assessment for foreign companies: KWD 1,500