TaxSavvyKW

Tax registration for a foreign partner in an unlisted company

Our foreign company holds 30% of a Kuwaiti company. Who registers for tax?

The situation

Foreign shareholders in unlisted Kuwaiti companies are taxed at 15% on their share of profit.

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

What it means for you

The Kuwaiti company usually handles the tax filing on the foreign share, but confirm who registers in your case. Example: profit KWD 300,000, foreign share 30% = KWD 90,000 x 15% = KWD 13,500.

What to do

  1. Confirm the filing party.
  2. Register.
  3. Compute tax on the share.
  4. File yearly.

We can do this for youTax registration and annual tax card for a foreign company or foreign owned share: KWD 300

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