Income tax on companies by November 2019

Ministry of Finance is preparing to implement a Tax Law on companies as of November 2019, reports Arab Times citing Al-Shahed daily. According to report, the tax will be implemented on the public, closed and professional shareholding companies such as clinics, law firms, legal studies and consultancies, indicating 10 percent tax will be imposed on revenues depending on the nature of work and activity of the companies.

With the implementation of tax, companies in return will receive a package of privileges and government services with 2.5 percent reduction in labor support tax and scientific advancement tax, and one percent reduction in zakat tax from the company’s revenues, report added.

The proposed tax imposition on Kuwaiti companies will boost the state revenues in commercial, touristic, and cultural projects, as the system will ensure strict supervision of the companies to become conversant with their surpluses, revenues.