Tax inspection, assessment, objection and appeal
Every Kuwait return is inspected. We prepare the inspection file, review the assessment, file a reasoned objection within 60 days and take it to the Tax Appeals Committee if needed.
KWD 1,200Per assessment
For: Foreign companies and foreign owned shares under the Income Tax Law that receive an assessment after the mandatory inspection.
What we need from you
Assessment letter with date
Objection clock
Filed declaration and schedules
Basis
Contracts and invoices for disallowed costs
Evidence
Subcontractor retention evidence
Cost support
Treaty residence certificate if relief denied
Treaty arguments
Prior years' assessments
Consistency
What we discuss
Which adjustments are material?
Focus the objection
Was tax assessed on deemed profit?
Better records can rebut it
Pay disputed amounts or not?
Penalty exposure if the objection fails
Is the five year limitation relevant?
Old years may be time barred
What we file
Map each adjustment
File the objection
Example: KWD 120,000 of costs disallowed x 15% = KWD 18,000 extra tax in dispute
Appeal to the Tax Appeals Committee
What you get
Objection letter with evidence index
Appeal file if needed
Final position memo
The law
- 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
- Income Tax Law practice: deemed profit assessments: Where support is inadequate the authority may assess tax on deemed profit as a percentage of turnover 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
- 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
Questions people ask
- Deadline to object to a Kuwait tax assessment
- No reply to our objection
- Paying tax after a revised assessment
- Costs incurred abroad disallowed
- Deemed profit used in our assessment
- Retention non compliance in an assessment
- Time limit for Kuwait to assess old years
- Preparing for the mandatory inspection
- Unreported income penalty in Kuwait
- Appealing to the Tax Appeals Committee
Contact us to book
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.