TaxSavvyKW

Kuwait Zakat rate and who pays

Does our Kuwaiti closed shareholding company pay Zakat, and at what rate?

The situation

Under Law No. 46 of 2006, Kuwaiti public and closed shareholding companies pay Zakat at 1% of net profit.

The law

  • Law No. 46 of 2006 on Zakat: 1% of net profit for Kuwaiti public and closed shareholding companies

What it means for you

Example: net profit KWD 2,000,000 x 1% = KWD 20,000. The base starts from audited net profit with adjustments in the executive rules. Check first whether the group is in DMTT, which removes Zakat.

What to do

  1. Confirm the company is a KSC.
  2. Check DMTT scope.
  3. Compute 1% of net profit.
  4. File the declaration.

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

Related