Kuwait Looks to Levy Local Business Tax
April 21, 2015 Taxation in Kuwait
KUWAIT CITY – In an effort to reduce its reliance on oil revenues, the government of Kuwait is now looking at enacting a tax on the profits realized by local companies.
Earlier this week at a conference the Finance Minister of Kuwait Anas al-Saleh indicated that the government is now looking at the feasibility of re-balancing the corporate taxes faced by local companies and foreign companies operating in the country.
Currently, foreign companies operating in Kuwait are subject to a levy on their activities, reaching a level as high as 55 percent in some cases, while local companies do not face any taxes on incomes derived in the county.
The push for some unification between the taxes paid by national and international companies comes from international organization such as the International Monetary Fund, which has encouraged Kuwait to enact such a move in order to reduce the government’s reliance in the volatile revenues from the export of oil.
Some experts have already come forward to say that implementing a tax on the profits of local businesses will be a politically sensitive move which will not enjoy widespread support.
The Minister noted that while the government looks at taxation on business, there are no current plans to tax personal incomes.
Photo By: Rob Faulkner