IndiansinKuwait.com - India Kuwait News and updates

IndiansinKuwait.coom

Kuwait planning to tax commodities harmful to human health

KUNA Thursday, January 16, 2025
Kuwait planning to tax commodities harmful to human health

Minister of Finance, Minister of State for Economic Affairs and Investments Nora Al-Fassam said her department is preparing the selective taxation law targeting commodities harmful to human health, with projections the levies would reap KD 200 million (USD 648.3 million) per year.

In an exclusive interview with KUNA, Al-Fassam said some of the major steps, expected to be taken soon, at the level of reforming taxation in Kuwait, is levying taxes on corporates income. She alluded in particular to the decree-into-law 6/2024 for the Exchange of Information for Tax Purposes the decree 157/2024 for taxation on multi-national entities.

Kuwait that joined, on November 15, 2023, the Organization for Economic Cooperation and Development/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) that involved 140 states and judicial districts. Since then, it has been exerting efforts to tackle international taxing evasion, enforce a more transparent taxation environment; some of the key steps for the reforms in this field.

Alluding further to some of the moves for taxing reforms, the minister cited the enactment of treaties on double taxation, combating financial evasion, working out accords for encouragement and mutual protection of investments, in addition to ratifying some international treaties in the realm of taxation cooperation. She indicated the entities that are compelled to pay the taxes according to the decree-into-law 157/2024 would not be compelled to pay levies for workers as stipulated in the law 19/2000, neither with respect of the alms proportion stipulated in the law 46/2006 for the period that began on January 1st.

Companies that pay financial contributions to Kuwait Institute for Scientific Research will continue to pay, she said, noting that decree into la 157/2024 mentions no pardon for the companies in this respect. Asked on the companies and groups exempted from the taxation law of the multi-national entities, the minister said they include some government entities, non-profitable organizations, international agencies, pension and investment funds.

The estimated proceeds from the projected fees on the multi-national entities amount to KD 250 million (USD 810.6 million) per annum. The enforcement and the levying will be effective during the 2027-2028 period.

Preliminary count of the entities subject to this tax stands at 300 groups, including 20 Kuwaiti groups and 25 Gulf groups. The rest are foreign groups that operate in Kuwait -- estimated at 225 groups or entity. Enforcing the tax is in line with the State of Kuwait vision 2035, aimed at achieving a diversified and sustainable economy. The proceeds will contribute to diversifying the non-oil returns and stem the siphoning of the returns to other states. Minister Al-Fassam affirmed that enforcing the tax would contribute to boosting Kuwait's role at the level of international cooperation for achieving just taxing practices.


  IndiansinKuwait.com is now on WhatsApp Channel    Follow Channel


📣 IndiansinKuwait.com is now on Telegram. Click here to join our channel (@IIK_News) and stay updated with the latest headlines

Read this article online at

Express your comment on this article

Submit your comments...
     
Disclaimer: The views expressed here are strictly personal and IndiansinKuwait.com does not hold any responsibility on them. We shall endeavour to upload/publish as many of the comments that are submitted as possible within a reasonable span of time, but we do not guarantee that all comments that are submitted will be uploaded/published. Messages that harass, abuse or threaten other members; have obscene, unlawful, defamatory, libellous, hateful, or otherwise objectionable content; or have spam, commercial or advertising content or links are liable to be removed by the editors. We also reserve the right to edit the comments that do get published. Please do not post any private information unless you want it to be available publicly.

Community News

 
Makar Sankranti and Republic Day Celebration by Maharashtra Mandal Kuwait in High Spirits

Under tremendous enthusiasm, the first cultural event of the calendar year for Maharashtra Mandal Kuwait (MMK) was held on...

FOKE Abbasiya Unit organized a chess tournament

The Friends of Kannur Kuwait Expats‘ Association (FOKE) Abbasiya Unit organized a chess tournament on Friday, January 31,...

ICAI Kuwait Chapter and KAAA Delegation Meets Kuwait Ambassador to India in New Delhi

A delegation from The Institute of Chartered Accountants of India (ICAI) – Kuwait Chapter, led by Chairperson CA Aditya Dhan...

NAFO Global's First Formation Meeting in Dubai Paves the Way for UAE Chapter

NAFO Global successfully conducted its first formation meeting in Dubai at Orchid Vue Hotel, Al Mankool, Bur Dubai, marking ...

AMU Old Boys’ Association  organized General Body Meet and Family Get-Together

Chirping birds and the sun shining through the delicately swaying branches brightened the morning. The air was filled with l...

go top