TaxSavvyKW

KFAS contribution calculation

How is the 1% KFAS contribution worked out?

The situation

KFAS is 1% of net profit after transfers to the statutory reserve and offsets of carried forward losses.

The law

  • Kuwait Foundation for the Advancement of Sciences contribution: Kuwaiti shareholding companies contribute 1% of net profit after statutory reserve and loss offsets; not a tax

What it means for you

Example: net profit KWD 5,000,000, statutory reserve KWD 500,000, base KWD 4,500,000 x 1% = KWD 45,000. Offset any carried forward losses first. KFAS is a contribution to science, not a tax.

What to do

  1. Compute reserve.
  2. Offset losses.
  3. Apply 1%.
  4. Record.

We can do this for youNLST for Boursa listed companies and KFAS contribution: KWD 600

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