Kuwait Proposal for Business Tax on Local Companies Submitted to Parliament

Kuwait's Ministry of Finance has submitted a proposal to parliament to amend the Income Tax Law for the introduction of a business profits tax for local companies. Currently, only foreign companies carrying on business in Kuwait are subject to income tax, while companies wholly owned by nationals of Kuwait or GCC countries are generally exempt. Key points of the proposal are summarized as follows.

Business Profits Tax

The proposed rate of tax is 10% for companies, including partnerships, f…