VAT and Business Profits Tax readiness review (proposals, not in force)

Kuwait has no VAT or excise today and the 15% Business Profits Tax is a proposal. We model the likely cost, list system and contract changes, and update the plan the day a law is published.

KWD 500One time, refreshed on enactment

For: Kuwaiti SMEs and groups above KWD 1.5 million revenue, importers, and businesses selling into VAT GCC states.

What we need from you

Revenue by entity
Proposed BPT threshold of KWD 1.5 million
Payments to non-residents by type
Proposed 5% WHT
Sales to customers in UAE, Saudi Arabia, Bahrain, Oman
Their VAT may apply now
Billing and ERP capability
Readiness
Contracts with tax clauses
Gross up risk

What we discuss

Is revenue above KWD 1.5 million?
Proposed BPT scope
Do you sell into VAT GCC states?
Registration may be needed there now
Do you pay foreign vendors royalties or technical fees?
Proposed WHT
Is your group in DMTT already?
Interaction to watch

What we file

Model BPT
Example: profit KWD 1,000,000 x 15% = KWD 150,000 if enacted as proposed
Track legislation

What you get

Readiness memo
Update note on enactment

The law

GCC VAT Framework Agreement (signed 2017): Kuwait status: Kuwait has not implemented VAT; a draft law is under discussion; there is no excise tax Source
Draft Business Profits Tax Law (proposal, not enacted): Would apply 15% to a wider base with businesses under KWD 1.5 million revenue excluded, and 5% WHT on dividends, royalties and technical fees 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.