Zakat Tax

Kuwaiti public and closed shareholding companies are required to pay Zakat Tax at 1% of net profit for the year, which is payable to the Ministry of Finance (“MoF”) pursuant to Law No. 46 of 2006 concerning Zakat and contributions by public and closed shareholding companies to the State budget.

Companies subject to the Law:

Kuwaiti public and closed shareholding companies

Added value to business entities from Zakat tax services

• Ensure compliance with the applicable legislative and regulatory requirements in the State of Kuwait.
• Mitigate  risks of exposure to financial penalties and sanctions, and thus, save relevant expenses and costs.
• Enhance business entity’s reputation allowing it to continue doing business in Kuwait and secure new business.

Services provided by Baker Tilly

Certification of Zakat Tax Financial Declaration:

Companies regulated by the Law shall file the financial declaration as audited by an audit firm, which is registered with Tax Department, not later than the fifteenth day of the fourth month following the end of the reporting period.

In addition, Baker Tilly provides advisory services pertaining to tax objections and appeals against decisions made by MoF, if any.

References:

• Law No. 46 of 2006 concerning Zakat and contributions by public and closed shareholding companies to the State budget.
• Ministerial Resolution No. 58 of 2007 issuing the Executive Regulations of Law No. 46 of 2006 concerning Zakat and contributions by public and closed shareholding companies to the State budget.
• Administrative Decision No. 876 of 2013 concerning the issuance of the executive rules and instructions of Law No. 46 of 2006 concerning Zakat and contributions by public and closed shareholding companies to the State budget, as amended by Administrative Decision No. 2028 of 2015.

Other related services

• Income Tax
• National Labor Support Tax – NLST
• Value added Tax – VAT
• Tax Compliance – FATCA
• Tax Compliance – CRS
• Tax Compliance – BEPS