Treaty relief claims in the Kuwait tax return (including India Kuwait DTAA)

Kuwait does not apply treaty relief at source. We test PE and treaty articles, prepare residence evidence and claim relief in the return, then defend it at inspection.

KWD 800Yearly

For: Foreign companies from treaty countries earning Kuwait income, such as Indian IT and engineering firms.

What we need from you

Tax residence certificate from home country
Treaty entitlement
Contracts and service days in Kuwait
PE test
Income split by type (services, royalty, interest)
Treaty article
Prior treaty claims and outcomes
Consistency
Group structure
Beneficial ownership

What we discuss

Do you have a PE in Kuwait under the treaty?
Most disputes centre on PE
Which income is attributable to the PE?
Profit attribution disputes are common
Are costs outside Kuwait deductible?
Often challenged
Is the treaty in force for the year?
Check treaty status

What we file

Treaty analysis
Claim relief in the tax return
Example: India treaty table shows 10% rate on royalties; Kuwait reviews the claim at inspection

What you get

Treaty memo and residence certificate
Inspection defence notes

The law

Kuwait Income Tax Law: no withholding tax: Kuwait law imposes no withholding tax; dividends from listed Kuwaiti companies have been exempt since 10 November 2015 Source
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: delay penalties: 1% of the tax for each 30 days or part of delay in filing or payment Source

Questions people ask

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