Zakat declaration for Kuwaiti shareholding companies

We compute Zakat at 1% of net profit, prepare the declaration, and first check whether DMTT scope has removed the Zakat obligation.

KWD 500Yearly

For: Kuwaiti public and closed shareholding companies (KSC) outside DMTT scope.

What we need from you

  • Audited financial statements

    Net profit base

  • Legal form (public or closed KSC)

    Scope

  • Group consolidated revenue

    DMTT test

  • Dividends and income from Zakat paying subsidiaries

    Possible exclusions

  • Prior Zakat declarations

    Consistency

What we discuss

  • Are you a KSC, or a WLL?

    Zakat Law targets shareholding companies

  • Is the group in DMTT scope?

    DMTT entities are no longer subject to Zakat

  • Any exclusions for income already subject to Zakat?

    Avoid double counting

  • Is KFAS also due?

    Separate 1% contribution

What we file

  • Compute Zakat base

    Example: net profit KWD 2,000,000 x 1% = KWD 20,000

  • File the Zakat declaration

  • Pay Zakat

What you get

  • Zakat working and declaration

  • DMTT interaction note

The law

  • Law No. 46 of 2006 on Zakat: 1% of net profit for Kuwaiti public and closed shareholding companies Source
  • DMTT Law: interaction with other levies: Entities subject to DMTT are no longer subject to the Income Tax Law, Zakat Law or NLST Law Source
  • 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 Source

Questions people ask

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.

Sources