TaxSavvyKW

Proposed Kuwait business profits tax

Will my Kuwaiti company pay a 15% profits tax?

The situation

A draft Business Profits Tax Law would impose 15% on a wider base, excluding businesses with revenue below KWD 1.5 million. It remains a proposal.

The law

  • Draft Business Profits Tax Law (proposal, not enacted): Would apply 15% to a wider base with businesses under KWD 1.5 million revenue excluded, and 5% WHT on dividends, royalties and technical fees

What it means for you

If enacted as drafted, Kuwaiti owned companies above KWD 1.5 million revenue could be taxed for the first time. Model the impact but do not change pricing yet.

What to do

  1. Check revenue against KWD 1.5 million.
  2. Model 15% on profit.
  3. Watch legislation.
  4. Plan.

We can do this for youVAT and Business Profits Tax readiness review (proposals, not in force): KWD 500

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