TaxSavvyKW

First fiscal period for a new taxpayer

We started in Kuwait in September. Does our first tax period end in December?

The situation

The first fiscal period may be shorter or longer than 12 months within set limits, then becomes annual.

The law

  • Income Tax Law Executive Bylaws: registration and tax card: Register and apply for a tax card within 30 days of starting activity or signing a contract; tax cards are annual and valid to 31 December
  • Income Tax Law and Executive Bylaws: declaration and payment: Declaration due by the 15th day of the 4th month after year end; 60 day extension possible; tax paid with the return or in four instalments on the 15th of the 4th, 6th, 9th and 12th months

What it means for you

KPMG cites a first period of 7 to 18 months from the start of activities; PwC cites 6 to 18 months. Starting in September, you may be able to run to 31 December of the next year. Choose with the auditor and confirm with the authority.

What to do

  1. Decide the first period end.
  2. Confirm with the authority.
  3. Align audit timing.
  4. Diary the return date.

Sources differ on the minimum length; confirm.

We can do this for youTax registration and annual tax card for a foreign company or foreign owned share: KWD 300

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