Tax registration after forming a Kuwait company

The situation

Taxpayers register and apply for a tax card within 30 days of starting activity or signing a contract.

The law

• Income Tax Law Executive Bylaws: registration and tax card: Register and apply for a tax card within 30 days of starting activity or signing a contract; tax cards are annual and valid to 31 December

What it means for you

This applies to foreign companies and to the foreign share of Kuwaiti companies. Without a tax card, customers may hold payments or retain 5% until clearance. A wholly Kuwaiti or GCC owned company is generally outside the income tax but may face Zakat if it is a KSC.

What to do

1. Check if any foreign ownership exists.
2. Prepare the registration forms.
3. Submit within 30 days.
4. Collect and renew the tax card yearly.

Related

• Doing business in Kuwait without a local agent
• Kuwaiti or GCC owned company and income tax
• Activities that need extra approvals in Kuwait
• Choosing between a WLL and a KDIPA entity
• Foreign ownership limit in a Kuwait WLL
• Income tax on a foreign partner's share of a Kuwait WLL