TaxSavvyKW

GCC owned companies and Zakat

Our company is owned by Saudi investors. Do we pay Kuwait Zakat or income tax?

The situation

GCC owned companies are outside income tax except for any foreign share; Zakat applies to Kuwaiti shareholding companies.

The law

  • Amiri Decree No. 3 of 1955 as amended by Law No. 2 of 2008 (Income Tax Law): 15% tax on net profits of foreign corporate bodies doing business in Kuwait; Kuwaiti and GCC owned companies taxed only on their foreign ownership share
  • Law No. 46 of 2006 on Zakat: 1% of net profit for Kuwaiti public and closed shareholding companies

What it means for you

GCC owned companies are outside income tax except for any non GCC foreign share. If the company is a Kuwaiti KSC, Zakat applies at 1% of net profit. Map the ownership chain to confirm which levy applies.

What to do

  1. Map ownership.
  2. Confirm legal form.
  3. Apply Zakat or income tax.
  4. File.

We can do this for youZakat declaration for Kuwaiti shareholding companies: KWD 500

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