Bank Accounts website
Flag Theory website
We are not currently operating in this jurisdiction.
For a full list of countries where we operate, please click below.

Kuwait

Taxes

Want to setup a company? This will tell you about tax laws in Kuwait, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC which is the most common company type in Kuwait.

Kuwait does not impose income tax on companies wholly owned by nationals of Kuwait or other Gulf Cooperation Council jurisdictions. However, GCC companies with foreign ownership are subject to taxation to the extent of the foreign ownership. Income tax is levied on net profits earned from Kuwait-source. However, the tax law does not clearly state the tax treatment of foreign income and is currently treated on a case-by-case basis. Corporate Income tax rate is 15% in Kuwait. This ranks the country as 47th overall in terms of corporate tax rate worldwide.

Kuwait does not imposes value added tax, that ranks the country as 1st overall in terms of VAT taxation rate internationally. In terms of other taxation, an employer will contribute 11.50% to the equivalent of a social security fund and an employee will contribute 10.50%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 98hours. Contributing to this is the number of yearly labor tax payments, which is 12 in KW.

Thin capitalization standards aren't in effect. Thin capitalisation refers to any sort of requirements on a business and the debt-to-asset ratios. Dividends are generally exempted from taxation. A dividend is a distribution of a portion of a company profit, passed by by the board, to a class of its shareholders. Dividends can be issued as cash payments, shares of stock, or other property. Capital gains on the sale of assets and shares by foreign shareholders are treated as normal business profits and are subject to 15% tax. Capital Gains from the disposal of securities on the Kuwait Stock Exchange are exempted. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

There are no withholding taxes on payments on interests, dividends or royalties to non-residents.
There is no known tax on wealth in Kuwait. There are not known inheritance, real property and transfer taxes in Kuwait. There are no well known R&D intitiatives that provide breaks on taxation in Kuwait.

The above is not tax or legal advice for your company's situation. Incorporations.io can to point you to an accountantin Kuwait who can get you an answer. Ready to get started? Click the free consultation button above.

Country details

Kuwait
KWD
Kuwait City
Asia
Arabic (Kuwait), English
2,789,132

Tax treaties

Country Type Date Signed
Slovakia DTC  2012-11-13
Netherlands DTC  2001-05-29
Philippines DTC  2009-11-03
Croatia DTC  2001-05-29
Mexico DTC  2009-10-27
Former Yugoslav Republic of Macedonia DTC  2012-03-30
Portugal DTC  2010-02-23
Senegal DTC  2007-04-10
Brunei Darussalam DTC  2009-04-13
India DTC  2006-06-15
Russian Federation DTC  1999-02-09
Luxembourg DTC  2007-12-11
Tunisia DTC  2000-04-18
Denmark DTC  2010-06-22
Mauritania DTC  2009-12-27
Cyprus DTC  1984-12-15
Latvia DTC  2009-11-09
Ukraine DTC  2003-01-20
Ireland DTC  2010-11-23
Canada DTC  2002-01-28
Seychelles DTC  2010-12-07
Czech Republic DTC  2001-06-05
United Kingdom DTC  1999-07-21
Indonesia DTC  1997-04-23
Romania DTC  1992-07-26
Georgia DTC  2011-10-13
Lithuania DTC  2013-04-20
Austria DTC  2002-06-13
Lebanon DTC  2001-01-21
Turkey DTC  1997-10-06
Italy DTC  1987-12-17
Belgium DTC  1990-03-10
Pakistan DTC  1998-06-30
Hungary DTC  1994-01-17
Morocco DTC  2002-06-15
France DTC  1994-01-27
Mauritius DTC  1997-03-24
Japan DTC  2010-02-17
Singapore DTC  2002-02-21
Malaysia DTC  2003-02-05
Germany DTC  1999-05-18
China DTC  1989-12-25
Greece DTC  2003-03-02
Hong Kong, China DTC  2010-05-13
South Africa DTC  2004-02-17
Switzerland DTC  1999-02-16
Korea, Republic of DTC  1998-12-05
Slovenia DTC  2010-01-11
Poland DTC  1996-11-16
Spain DTC  2008-05-26
Malta DTC  2002-07-24

Tax treaties Map

>

Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

Newsletter

Flag Theory is an internationalization and offshore solutions provider, and the creator of incorporations.io. We offer expert consultation advice and assistance.

Your privacy is important for us and we will keep your information secure. View our privacy policy

View past newsletters

Consultation with

Flag Theory is an internationalization and offshore solutions provider, and the creator of incorporations.io

In order to better serve you, we ask that you please fill out the following form as accurately as you can and provide as many details as possible. Thank you.

Your privacy is important for us and we will keep your information secure. View our privacy policy