Category Taxation in Kuwait

Remittance Tax in Kuwait, A First in the GCC

April 10, 2018 Taxation in Kuwait

remittance tax in kuwaitDOHA – Foreigners working in Kuwait will have a harder time if they plan on sending money home.

Earlier this month the Parliamentary Financial and Economic Affairs Committee of Kuwait announced that it has approved a bill which would impose a tax on overseas remittance sent by expats in the country.

The new tax is intended to be tiered, in order to lessen the impact on low-income earners.

The rate of tax applied to remittance of between KWD 1 and KWD 99 is only 1 percent, while the rate of transfers of between KWD 100 and KWD 200 are set at 2 percent, 3 percent for transfers of up to KWD 499, and 5 percent on all further transfers.

The government expects that if the tax is enacted, it could lead to tax revenues f as much as KWD 70 million.

The current level of remittance in Kuwait is esti...

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Kuwait Prepares Tax on Unhealthy Goods

July 17, 2017 Taxation in Kuwait

Consumption tax KuwaitKUWAIT – Kuwait will soon and that taxes on unhealthy products in an effort to raise taxes while reducing its reliance on oil revenues.

It has been reported by local news sources in Kuwait that the national Ministry of Finance has prepared a new bill for the implementation of new taxes on the sale of tobacco, soft drinks, and energy drinks.

The new tax falls in line with the taxes agreed upon for such products by the members of the Gulf Cooperation Council.

The new tax will be applied to the sale of tobacco and energy drinks at a rate of 100 percent, while the rate applied to soft drinks will be set at 50 percent.

The original tax scheme agreed-upon by the members of the Gulf Cooperation Council also called for a 100 percent tax on alcoholic beverages and pork, however, these products a...

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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 Internatio...

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