Tax Services
Income Tax
In 2023, the State of Kuwait joined the Inclusive Framework of the Organization for Economic Co-operation and Development (OECD) and ratified its reform. The “OECD” launched a tax called the Global Minimum Tax to ensure that large multinational entities pay at least 15% tax on taxable income in each country where they operate.
The new tax law came into effect as of 1/1/2025 and applies only to multinational entities operating in Kuwait whose annual global revenues exceed 750 million euros. The implementation of this initiative aims to ensure that multinational entities pay the minimum tax rate of 15% on taxable income generated in the State of Kuwait.
What are the tax consulting services for foreign companies regarding income tax?
Al Soor Certified Public Accountants Office’s role in representing clients before the Ministry of Finance (the authority responsible for income tax in Kuwait) includes:
1- Tax registration with the Ministry of Finance.
2- Preparing the tax return and auditor’s report, obtaining supporting documents, and paying any taxes if applicable.
3- Issuing the tax assessment letter and paying any tax differences if applicable.
4- Obtaining the tax clearance certificate to release the tax guarantee hold.
Tax services provided by Al Soor Office:
1- Providing tax advisory services.
2- Representing clients for tax matters in the State of Kuwait.
Zakat Declaration
Public and closed Kuwaiti shareholding companies are required to pay Zakat at a rate of 1% of their net annual profits to the Ministry of Finance.
Al-Sour provides services for preparing and approving Zakat tax returns, which must be submitted according to the law and audited by one of the audit offices accredited by the Tax Administration at the Ministry of Finance.
National Labor Support Tax:
Kuwaiti public shareholding companies are obligated to pay the National Labor Support Tax at a rate of 2.5% of annual net profits to the Ministry of Finance, pursuant to Law No. 19 of 2000 regarding the support and encouragement of national labor 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 Organization for Economic Co-operation and Development (OECD).
Al-Soor’s services in this area include:
1- Assessing the extent to which a multinational entity is subject to tax requirements in the State of Kuwait.
2 – Analyzing the group’s structure.
3 – Preparing tax policies in line with Kuwaiti laws and international standards.
4 – Preparing and submitting relevant tax return forms.
Foreign Account Tax Compliance Act ( FATCA):
The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law issued in 2010, which requires all non-U.S. foreign financial institutions to search their records for U.S. persons and report the identity and assets of those persons to the U.S. Treasury. The State of Kuwait signed a FATCA implementation agreement on 29/4/2015 with the United States government to improve international tax compliance and implement FATCA.
Al-Soor’s services regarding FATCA compliance include:
1- FATCA assurance services.
2- Advisory services on FATCA compliance.
Common Reporting Standard (CRS) Compliance:
The Common Reporting Standard (CRS) is a global standard for the automatic exchange of tax and financial information. The State of Kuwait, represented by the Ministry of Finance, signed the multilateral agreement with the OECD on 19/8/2016 regarding the CRS.
Al-Soor’s services regarding CRS compliance include:
1- CRS assurance services.
2- Advisory services on CRS compliance.