Service PE in Kuwait without an office
Our consultants work in Kuwait for client projects but we have no office. Do we need to register?
The situation
A non-resident providing services to Kuwaiti customers for more than six months in any 12 month period may create a PE, per KPMG's summary of the DMTT rules; income tax practice also looks at activity in Kuwait.
The law
- Amiri Decree No. 3 of 1955 as amended by Law No. 2 of 2008 (Income Tax Law): 15% tax on net profits of foreign corporate bodies doing business in Kuwait; Kuwaiti and GCC owned companies taxed only on their foreign ownership share
- Decree-Law No. 157 of 2024 on the Multinational Entities Group Tax (DMTT): 15% minimum tax for MNE groups with consolidated revenue of EUR 750 million in two of the four prior years, for periods from 1 January 2025
What it means for you
If your staff are in Kuwait for long periods, you likely have taxable presence. Track days and roles by project. Kuwait treaty relief is claimed in the return, not at source, so register and then argue treaty protection if available.
What to do
- Track staff days in Kuwait.
- Assess PE exposure.
- Register if exposed.
- Claim treaty relief in the return if eligible.
We can do this for youTax registration and annual tax card for a foreign company or foreign owned share: KWD 300