TaxSavvyKW

Losses and Zakat

Our KSC made a loss. Do we file Zakat?

The situation

Zakat is 1% of net profit, so a loss gives no Zakat due.

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

Zakat is 1% of net profit, so a loss year gives no Zakat due. Confirm whether a nil declaration is still expected and file it if so. Keep audited accounts as support.

What to do

  1. Confirm filing requirement.
  2. File nil declaration.
  3. Keep accounts.
  4. Monitor next year.

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

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