Tax Services

Income Tax

In 2023, the State of Kuwait joined the OECD Inclusive Framework and ratified its two-pillar reform. As part of this reform, the OECD introduced the Global Minimum Tax to ensure that large multinational entities pay a minimum of 15% tax on taxable income in every country where they operate.

The new tax law came into effect on 1/1/2025 and applies only to multinational entities operating in Kuwait with annual global revenues exceeding EUR 750 million. The implementation of this initiative aims to ensure that multinational entities pay the minimum tax of 15% on taxable income generated in Kuwait.

What is the tax advisory services for foreign companies regarding income tax?

Al-Soor Certified Public Accountants role includes representing clients before the Ministry of Finance (which is the authority responsible for income tax in the State of Kuwait) through:

1- Tax registration with the Ministry of Finance.

2- Preparing tax returns and auditor’s reports, obtaining supporting documents, and paying any applicable taxes.

3- Issuing tax assessment letters and paying any tax differences if applicable.

4- Obtaining tax clearance certificates to enable the release of withheld tax guarantees.

What services does Al-Soor provide regarding taxation?

1- Providing tax advisory services.

2- Representing clients in tax matters in Kuwait.

Zakat Declaration

Kuwaiti public and closed shareholding companies are required to pay Zakat tax at a rate of 1% of their annual net profits to the Ministry of Finance.
Al-Soor provides services for certifying the Zakat tax return, which must be submitted by companies subject to the law, audited by one of the auditing firms accredited by the Tax Administration at the Ministry of Finance.

National Workforce Support Tax

Kuwaiti public shareholding companies are obligated to pay the National Labor Support Tax at a rate of 2.5% of their annual net profits to the Ministry of Finance, pursuant to Law No. 19 of 2000 regarding the support of national labor and its encouragement to work in the private sector.

Multinational Entity Tax

This tax aims to ensure that multinational entities pay their fair share of taxes in line with international agreements on the global minimum tax and the standards set by the OECD.

Al-Soor’s services in this area include:

Assessing whether the multinational entity is subject to tax requirements in Kuwait.
Analyzing the group’s structure.
Preparing tax policies in line with Kuwaiti laws and international standards.
Preparing and filing the relevant tax return forms.

FATCA Compliance

The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law enacted in 2010 requiring all non-U.S. foreign financial institutions to search their records for U.S. persons and report their identities and assets to the U.S. Department of Treasury. Kuwait signed the FATCA implementation agreement on 29/4/2015 with the U.S. government to enhance international tax compliance and enforce FATCA.
Al-Soor’s services regarding FATCA compliance include:

FATCA assurance services.
Advisory services for FATCA compliance.

Common Reporting Standard (CRS) Compliance

The Common Reporting Standard is a framework for the automatic exchange of tax and financial information on a global level. On 19/8/2016, Kuwait, represented by the Ministry of Finance, signed the multilateral agreement with the OECD regarding the CRS.
Al-Soor’s services regarding CRS compliance include:
1- CRS assurance services.
2- Advisory services on CRS compliance.