TAX SERVICES IN KUWAIT

What we have to offer in Tax

Our specialists have the experience and industry expertise to help you with all your tax matters — locally and globally.

The firm’s expertise in local tax regulations enables it to offer expert tax advice to its foreign and local clients, helping them to maximize tax benefits and minimize tax burdens. Our team is well-known in Kuwait for providing innovative and comprehensive research and tailor-made tax strategies.

Alkhuzam Co provides speedy and proactive access to the latest developments in international tax planning, which in turn helps us to advise foreign investors on international tax regulations.

Corporate Tax

FATCA & CRS Compliance

Our Corporate Tax services team can help you understand tax legislation and how the Kuwait tax system works. We provide practical solutions to minimize your taxes, manage tax risks, and avoid high-pitched tax assessments.

The introduction of the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) regulations has significantly impacted most financial institutions.

Alkhuzam Co in Kuwait has assisted various financial institutions with the implementation of FATCA and CRS. Our team has undertaken some of the most complex FATCA and CRS advisory and compliance assignments in recent years. Our service offerings include:

• FATCA and CRS gap assessments

• FATCA and CRS training

• FATCA and CRS implementation

• FATCA and CRS account remediation

• Assisting in drafting policies and procedures for FATCA and CRS

• Conducting detailed health checks

• FATCA and CRS reporting

• FATCA and CRS certifications as required by the Ministry of Finance

Indirect Tax (VAT & Customs)

Given the VAT developments in the region, businesses will need to spend time and effort realigning operations, including supply chain and logistics, pricing, procurements, accounting, and information technology systems.

Alkhuzam Co in Kuwait has a specialized unit to assist businesses in getting ready for VAT. Our VAT team can assist businesses with the following:

• VAT impact assessment

• VAT implementation

• VAT consulting advice on specific transactions

• Review of systems

• VAT return preparation

• VAT mixed-use apportionment calculations

• VAT health checks

• VAT training

Alkhuzam Co can also provide specialist advice on other indirect taxes, such as customs duty.

International Tax

Whether you are a start-up business making your first step into or outside Kuwait or a multinational enterprise with complex operations and structures worldwide, we offer comprehensive, integrated tax services through Morison International’s extensive network covering every major business center globally.

If you are a Kuwaiti business looking to expand offshore, we can assist with:

• Outbound tax planning

• Understanding offshore tax jurisdictions

• Transfer pricing

• Withholding tax regimes: Advising on the tax implications of international flows of interest, dividends, royalties, etc.

• Tax Management services

If you are overseas company looking to do business in Kuwait, we can help with:

• Determining the best business structure

• Assisting with the process of incorporating a company in Kuwait

• Understanding Kuwait tax requirements (including registration, tax filing, record keeping, and tax retentions)

Alkhuzam Co's global network of tax professionals, affiliated with Morison Global, operates consistently across all countries. We share a common goal: to deliver exceptional technical outcomes with a focus on your business objectives. Regular meetings and forums ensure that the service you receive in Kuwait is mirrored by our colleagues around the world.

Private Client Services

We have specialist teams throughout our global Morison network focusing on International Private Wealth, Entrepreneurial Private Wealth, US Private Wealth, and Family Private Wealth. We deliver a comprehensive set of services including asset structuring, succession planning, will planning, trust services, tax compliance, risk management, family business advisory, and family office services on both a national and international scale.

We offer various tailor-made solutions to suit the requirements of High Net-Worth Individuals. With the global tax environment becoming more detailed and compliance-oriented, we can assist businesses and individuals with the following:

• Understanding the tax requirements of foreign jurisdictions

• Assisting in the preparation and filing of overseas tax returns through our Morison Global network

• Obtaining tax residency certificates

• Advising on tax-efficient structures

• Meeting reporting and disclosure requirements

Tax Accounting Services

With the evolving tax environment in Kuwait, it is crucial for businesses to maintain accurate books of accounts and records that meet local regulatory requirements.

Alkhuzam Co can assist businesses with preparing their books of accounts in accordance with local regulations. We provide guidance on the necessary supporting documents that need to be maintained and advise on potential tax exposures that may arise from the nature of transactions or the supporting documents kept.

Tax Clearance Certificate /

Tax Retention Release Letter

Overview of Kuwait Tax Retention Requirements

The Kuwait Tax Retention Rules (KTRR) are tax obligations introduced to aid in the collection of taxes in Kuwait and apply to both foreign and local companies.

Article 37 of the Executive Bylaw mandates that all public and private entities (referred to as “Payers”) engaged in trade or business in Kuwait must retain 5% of the total contract value or each payment made to any contracting party. This rule applies broadly to any payment made by a Payer. Both foreign and Kuwaiti companies, as well as other GCC companies, are required to comply with these rules.

Retained amounts may not be released unless the Kuwait Ministry of Finance agrees to issue a retention release letter in the following cases:

• The entity is not subject to tax, is exempt from it, or has realized a loss during the year.

• The entity has settled all due taxes.

• The entity provides a certified bank guarantee or another guarantee accepted by the Tax Administration to cover the due tax

How Alkhuzam Co can help:

• Review contracts and advise on tax retention requirements

• Assist in restructuring contracts from a Kuwait tax perspective

• Help obtain tax retention release letters or tax clearance certificates from the Kuwait Ministry of Finance

• Assist in preparing and filing Tax Retention Returns/ Notifications

• Draft tax retention policies and procedures

Tax Litigation Support

Many multinationals face ongoing tax litigation in one or more jurisdictions where they operate. Globally, tax authorities are adopting more aggressive approaches, leading to longer and costlier litigations for businesses.

At Alkhuzam Co, we assist our clients in resolving tax disputes not only through tax departments and local courts but also by utilizing alternative dispute resolution mechanisms available under tax treaties and bilateral investment promotion agreements.

Our team specializes in tax dispute resolution and tax arbitration, and we have successfully handled some of the largest tax settlements in Kuwait.

Transfer Pricing

Globally, new transfer pricing regulations from the Organisation for Economic Co-operation and Development (OECD)—particularly concerning intellectual property as part of their Base Erosion and Profit Shifting (BEPS) Initiative—are rapidly being introduced. These changes will significantly impact current and future transfer pricing structures for businesses.

Supported by a dedicated transfer pricing team within the Morison network, we offer a range of services including planning, compliance, audit defense, and benchmarking. We work with you to develop transfer pricing policies that are defensible, flexible, and aligned with your overall tax planning strategies.

Zakat

As per Kuwait Foundation for the Advancement of Sciences (KFAS), all Kuwaiti shareholding companies are required to Pay 1% of their net profits as per their financial statements, after transfer to the statutory reserve & the offset of losses carried forward, to the KFAS, which supports scientific progress.

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Got a Question?

Establishing your Business Footprint in Kuwait

FAQs: Tax

What are the requirements for Tax Clearance Certificate in Kuwait?

Here's what you need: Copies of the Civil ID, company license, commercial registration, authorized signatory, company foundation contract (& most recent amendments), contract concluded (for individuals), passport & original letter of request for license issuance (for individuals).

What are the procedures to obtain Tax Clearance Certificate in Kuwait?

1. Gather documents & fill services application forms.

2. Submit documents & forms to Ministry of Finance (General Registration Department).

3. Receive Clearance Certificate from the certificate issuance department.

Where can I learn more about you?

You can explore other sections of this website, such as the "About Us" page or our blog, to learn more about our company, mission, and team. Moreover, if you would like to learn more about the Tax service we provide, feel free to reach out to us for a consultation or quotation. Drop us an email.