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Kuwait Income Tax Rates 2015

Individuals

Taxable Income (KWD) Tax Rate (%)  
All Income 0

 

Companies

Taxable Income  (KWD) Tax Rate (%)  
Foreign corporate bodies carrying on a trade, business or service 15
All other companies 0

The following are chargeable to tax:

  • Profits of a foreign company operating within or outside Kuwait to the extent that they are connected with, or related to its operations within Kuwait.
  • The proportion of the profit of a Kuwaiti joint venture attributable to foreign corporate partners.
  • The proportion of the profit of a Kuwaiti corporate entity attributable to foreign corporate shareholders.

There is no taxation for local companies.

VALUE ADDED TAX (VAT)

There is no VAT.

CAPITAL GAINS TAX (CGT)

Individuals

There is no CGT.

Companies

Foreign Companies only - Tax rate 15%

LOSSES

Losses can be carried forward for three years and offset against profits.

TREATY NETWORK

Certain Countries

WITHHOLDING TAX

A system of 'holdback' of 5% of the contract value / payments is followed except for dividends and royalties. This is payable when tax assessment is done and a tax clearance certificate is furnished. Investment companies and banks that manage portfolios and funds are required to deduct 15% of dividends and profits of foreign companies and deposit them with the tax department.


Doing Business Abroad - Tax Rates 2015 /2016

 
Albania | Angola | Austria | Azerbaijan | Bahrain | Belgium | Bulgaria | Cameroon | Croatia | Cyprus
Czech Republic | Denmark | Egypt | Estonia | Finland | France | Georgia| Germany | Greece
Hungary | Ireland | Isle of Man | Israel | Italy | Jordan | Kazakhstan | Kenya | Kuwait | Latvia | Lebanon
Liechtenstein | Lithuania | Luxembourg | Malta | Mauritius | Morocco | Netherlands | Nigeria
Norway | Oman | Palestine | Poland | Portugal | Qatar | Romania | Saudi Arabia | Serbia | Slovakia
Slovenia | South Africa | Spain | Sweden | Switzerland | Tanzania | Tunisia | Turkey | Uganda
Ukraine | United Arab Emirates | United Kingdom | Yemen
Contact Us
Rabea Al Muhanna
Horwath Al Muhanna & Co.
Madeena Tower 1 - 10th Floor
Fahed Al Salem Street
Kuwait City, Kuwait
965 22452546