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Kuwait
Business Environment
Business
Practices | Accounting Rules
| Tax
Rates | Intellectual Property
| Legal
Framework | Standards
Business Practices
- General information
- Kwintessential,
Website with general information about
culture, customs, etiquette and doing
business in Kuwait.
Farnhamcastle,
Website about business' etiquette in
Kuwait.
- Opening hours and days
- Banks are open for customers from
Sunday to Thursday from 8 AM to 1 PM.
Government offices are open from Sunday to
Thursday from 7:30 AM to 1:00 PM
- Stores and shops are open from
Saturday to Thursday morning from 8:30 AM to
12:30 PM and from 4:00 PM to 7:00
PM.
Public holidays
| New
Year |
January 1st |
|
Islamic New Year |
Variable |
|
Kuwait's National Day |
February 25 |
|
Liberation Day |
February 26 |
|
Prophet's Birthday |
Variable |
|
Ascension of the Prophet |
Variable |
| Aid el
Fitr |
Variable, at the end of
Ramadan |
| Aid El
Adha |
Variable, in accordance to the
Lunar Calendar, but always 70 days
after the end of Ramadan |
- Holiday compensation
- If a holiday falls on a Friday
(resting day of the week), it is carried
forward to the following working
day.
Periods when companies usually close
| Aid El Fitr |
2 days |
| Aid El Adha |
4 days |
Accounting Rules
- Tax year
- From January 1st to December
31.
- Accounting standards
- There is not a mandatory accounting
system required in Kuwait. However,
companies are asked to respect the International Financial
Reporting Standards. Projects of
harmonization and unification of an
accounting system and its presentation are
being discussed at the Gulf Cooperation
Council.
- Accounting regulation bodies
- Public Authority for
Industry.
Stock Exchange of
Kuwait.
- Accounting reports
- All commercial companies of Kuwait
are required to keep several accounting
books every year. These must be written
in Arabic:
- Sales Journal
- Inventory
- General Ledger
- Expenditures Analysis Book
- Stock Shares Evolution Reports
In order to create a financial analysis,
companies are required to generate a balance
sheet and a profit and loss report, which have
to be submitted to the Ministry of Commerce and
Industry for its evaluation no later than three
months after the end of the fiscal
year.
- Publication requirements
- The companies wishing to enter in the
stock market of Kuwait are required to provide
accounting publications. They must have
published their audited accounting reports for
the last two years prior to their introduction
into the stock market. These financial
statements must show their structure and their
net profits. Still, the Council of
Directors of the Stock Exchange of Kuwait can
request other elements before giving its
approval. All companies quoted on the
Stock Market of Kuwait must publish their
audited financial statements with their
complete balance sheet and the profit and loss
report no later than three months after the end
of the fiscal year. They must also
publish their periodical statements no later
than two months after the end of their fiscal
period.
- Professional accountancy bodies
- Association of Accountants
and Auditors of
Kuwait.
Directory of Accountants and
Auditors in Kuwait.
- Certification and auditing
- The certification and the control of
accounts have to be made by an organization
independent from the company, certified and
registered at the Ministry of Commerce and
Industry. The process of certification and
control of accounts are ruled by the Law No. 5
of 1981.
- Accounting news
- Association of Accountants
and Auditors of
Kuwait
Article describing the
Accounting System in
Kuwait.
Tax Rates
Consumption taxes
- Nature of the tax
- There is no VAT (value added tax)
in Kuwait.
- Tax rate
- None.
- Reduced tax rate
- None.
- Other consumption taxes
- None.
Corporate taxes
- Company tax
- Unified since February 2008,
tax rateshave been: reduced to 15%
instead of calculating 11 separate
taxes which could add up to 55% based
on the previous
system.
- Capital gains taxation
- Capital gains obtained by a
foreign shareholder are considered
regular revenues and are subject to the
current tax rate.
- Main allowable deductions and tax
credit
- There are
none.
- Other corporate taxes
- Capital gains obtained by a
foreigner are considered regular
revenues and are subject to the current
tax rate that applies to the
company.
Individual taxes
Tax rate
|
Individual Income Tax |
As a rule, all individuals
(residents, non-residents) do
not pay income taxes in Kuwait,
but a project of Tax Levy Act
has been presented to the
National Assembly. |
|
From KWD 0 to 2,000 |
5% |
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From KWD 2,001 to 10,000 |
10% |
|
From KWD 10,001 to 50,000 |
15% |
|
From KWD 50,001 to 250,000 |
20% |
|
From KWD 250,001 to
1,000,000 |
25% |
|
More than KWD 1,000,000 |
30% |
- Allowable deductions and tax
credit
- The fixed deductions foreseen
within the framework of the project of
the Tax Levy Act are as follows:
Fixed deduction of 6,000 KD for
singles.
7,000 KD for married individuals
without dependent children.
8,400 KD for married couples with a
dependent child.
600 KD for every additional dependent
child.
- Special expatriate tax regime
- As a rule, foreign
individuals are not subject to pay
income tax in Kuwait, but a new project
of Tax Levy Act is being
elaborated. It should provide a
choice of place, in case that taxes
have already been paid in their country
of origin. Kuwait has signed
several agreements against double
taxing.
Double taxation treaties
- Countries with whom a double taxation
treaty have been signed
- List of countries having
a fiscal agreement with
Kuwait.
- Whithholding taxes
- Dividends: 0%, Interest: 0%,
Royalties: 0%
These incomes are treated as ordinary
business incomes and is normally assessed
on a deemed profit ranging from 96.5% to
100%
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Intellectual Property
- National organizations
- In Kuwait, patents and trademarks
must be registered in the Trademark Control and
Patents Office in the Ministry of Trade and
Industry (MCI).
- Regional organizations
- None.
-
- International membership
- Member of the WIPO (World Intellectual
Property Organization)
National regulation and
international agreements
| Type of property and
law |
Validity |
International agreements
signed |
Patent
Law No. 4 concerning Patents,
Designs and Industrial Models,
May 15, 2005 |
15 years, renewable for a
period limited to 5 years.
10 years for chemical
discoveries, medications and
pharmaceutical
compositions. |
|
Trademark
Law No. 3 of 2001 |
10 years, renewable one
time. |
Nice
agreement
|
Design
Law No. 4 concerning Patents,
Designs and Industrial Models,
May 15, 2005 |
5 years, renewable for two
consecutive 5-year
periods. |
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Copyright
Law No. 3 of 2001 |
50 years after the death of
the author. |
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Industrial Models
Law No. 3 of 2001 |
10 to 15 years. |
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Legal Framework
- Independence of justice
- Judicial Power in Kuwait is not
really independent. The Emir appoints all
judges and the Executive branch approves their
promotions and renewals of their
functions.
- Equal treatment of nationals and
foreigners
- The Judiciary System of the country
does not always guarantee a fair trial to a
foreigner.
- The language of justice
- The judicial language used in the
country is Arabic.
- Recourse to an interpreter
- It is possible to obtain the services
of an interpreter.
- Sources of the law and legal
similarities
- The main source of the country's law
is the Constitution of 1962. The legal system
is based on a civil law system with the
exception of personal status where Islamic law
prevails. Kuwait has not accepted mandatory
jurisdiction from The International Court of
Justice.
- Checking national laws online
- Directory of different
websites about Kuwait's Laws and its
Judicial System.
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Organizers:
Media Partners:
Floor Management
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