TaxSavvyKW

KDIPA incentives and tax relief

What incentives can KDIPA give, including tax?

The situation

The FDI law allows incentives such as tax relief, customs exemptions and land allocation for licensed investors. Secondary sources cite tax holidays of up to 10 years.

The law

  • Law No. 116 of 2013 on the promotion of direct investment (KDIPA): KDIPA can licence up to 100% foreign owned entities and grant incentives including tax relief, outside the general 49% limit

What it means for you

Incentives are discretionary and tied to the project's benefits. Tax relief matters only if the entity would pay the 15% income tax on foreign ownership. Large groups in DMTT cannot use FDI tax credits, so a holiday may just raise the top-up tax.

What to do

  1. List incentives you need.
  2. Link each to project benefits.
  3. Check DMTT impact.
  4. Request in the application.

Confirm incentive terms with KDIPA.

We can do this for youKDIPA licence for a 100% foreign owned entity or branch: KWD 3,000

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