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 (M.O.F) 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 the business entity’s reputation, allowing it to continue doing business in Kuwait and secure new business.
Services provided by Baker Tilly Kuwait
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 the 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.
Why Baker Tilly?
- Baker Tilly in Kuwait is a member of Baker Tilly International network based in the UK, ranked amongst the top 10 global accounting networks.
- Auditors in Baker Tilly Kuwait are licensed by Ministry of Commerce and Industry and are registered with Kuwait Ministry of Finance (MOF) to provide tax services.
- Extensive experience in providing Zakat Declaration service to companies operating across various business sectors in the State of Kuwait.
- Highly experienced bilingual team with specialized academic qualifications and professional certifications.
- Commitment to performing Zakat Declaration engagements according to predefined timelines, with no delays and responsiveness to client requirements.