TaxSavvyKW

Unreported income penalty in Kuwait

The authority found income we did not report. What penalty applies?

The situation

Unreported income carries a penalty of 1% of the final tax liability per 30 days or part, under Executive Rule 52 as applied by the authority.

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

Penalties run over time, so a long delay is costly. The authority also applies this to income claimed exempt under treaties if the claim fails. Settle or object promptly.

What to do

  1. Check the computation.
  2. Decide to settle or object.
  3. Act within 60 days.
  4. Fix reporting.

We can do this for youTax inspection, assessment, objection and appeal: KWD 1,200

Related