TaxSavvyKW

Treaty exempt income still declared

If income is exempt under the treaty, do we still declare it in Kuwait?

The situation

The authority applies the unreported income penalty to income claimed exempt under treaties if not properly declared.

The law

  • Income Tax Law and Executive Bylaws: delay penalties: 1% of the tax for each 30 days or part of delay in filing or payment

What it means for you

Declare the income and claim the exemption in the return. Not declaring risks 1% per 30 days penalties if the claim fails. Transparency helps the inspection.

What to do

  1. Declare the income.
  2. Claim the exemption.
  3. Attach evidence.
  4. Track the review.

We can do this for youTreaty relief claims in the Kuwait tax return (including India Kuwait DTAA): KWD 800

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