Annual income tax declaration, payment and assessment for foreign companies

We prepare the declaration from audited accounts, apply Kuwait's cost rules and treaty relief, choose lump sum or instalments, and handle the mandatory inspection, objections and appeals.

KWD 1,500Yearly

For: Foreign companies, branches and PEs in Kuwait; Kuwaiti companies with foreign shareholders for the foreign share.

What we need from you

Audited financial statements
Basis of declaration
Fixed asset and inventory lists
Support
Subcontractor details and contracts
Cost support
Trial balance
Support
Latest client payment certificate
Revenue support
Treaty residence certificate
Treaty relief claim

What we discuss

Will you file on time or request a 60 day extension?
Extension moves payment to one lump sum
Are costs incurred abroad well documented?
Weak support leads to deemed profit
Any related party interest or head office charges?
Interest to head office is not deductible
Treaty relief available?
Must be claimed in the return

What we file

Prepare declaration
Example: net profit KWD 200,000 x 15% = KWD 30,000; four instalments of KWD 7,500
File declaration
Pay tax

What you get

Filed declaration
Objection if assessment differs
Payment schedule for four instalments

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 Source
Income Tax Law and Executive Bylaws: declaration and payment: Declaration due by the 15th day of the 4th month after year end; 60 day extension possible; tax paid with the return or in four instalments on the 15th of the 4th, 6th, 9th and 12th months Source
Income Tax Law and Executive Bylaws: delay penalties: 1% of the tax for each 30 days or part of delay in filing or payment Source
Income Tax Law: objections and appeals: Object within 60 days of assessment; the authority decides within 90 days; appeal to the Tax Appeals Committee within 30 days Source
Statute of limitation (Art. 441, Civil Law and Law 2 of 2008): Tax claims and refund applications are barred five years after notification, with limits where no return was filed Source

Questions people ask

Online payment in KWD is not open yet. Send us a message and an adviser for Kuwait confirms the scope and the fee before any work starts.