TaxSavvyKW

Zakat and KFAS together

We pay Zakat. Do we also pay KFAS?

The situation

Kuwaiti shareholding companies contribute 1% of net profit to KFAS, separate from Zakat.

The law

  • Kuwait Foundation for the Advancement of Sciences contribution: Kuwaiti shareholding companies contribute 1% of net profit after statutory reserve and loss offsets; not a tax
  • Law No. 46 of 2006 on Zakat: 1% of net profit for Kuwaiti public and closed shareholding companies

What it means for you

KFAS is computed after statutory reserve transfers and loss offsets. Example: profit after reserve KWD 1,800,000 x 1% = KWD 18,000. It is a contribution, not a tax.

What to do

  1. Compute statutory reserve.
  2. Offset losses.
  3. Apply 1%.
  4. Record and pay.

We can do this for youZakat declaration for Kuwaiti shareholding companies: KWD 500

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