Source-cited draft: corporate income tax for Kuwait (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Corporate income tax rate
15%Law No. 2 of 2008 (Amendment to Income Tax Decree No. 3 of 1955) — https://taxsummaries.pwc.com/kuwait/corporate/taxes-on-corporate-income
Who is subject to CIT
Only foreign 'corporate bodies' carrying on trade or business in Kuwait, directly or through an agent. GCC companies are taxed only to the extent of non-GCC foreign ownershipLaw No. 2 of 2008 (Amendment to Income Tax Decree No. 3 of 1955) — https://taxsummaries.pwc.com/kuwait/corporate/taxes-on-corporate-income
Tax base
Net profits and capital gains attributable to the foreign body's activities in Kuwait (Kuwait-source income)Executive Regulations to Income Tax Decree (Law No. 2 of 2008) — https://taxsummaries.pwc.com/kuwait/corporate/income-determination
Zakat (Kuwaiti shareholding companies)
1%Law No. 46 of 2006 (Zakat and Contribution to State Budget) — https://taxsummaries.pwc.com/kuwait/corporate/other-taxes
National Labour Support Tax (NLST)
2.5%Law No. 19 of 2000 (National Labour Support Tax) — https://taxsummaries.pwc.com/kuwait/corporate/other-taxes
KFAS contribution
1%Kuwait Foundation for the Advancement of Sciences (KFAS) contribution rules — https://www.crowe.com/kw/insights/kuwait-corporate-tax-framework
Withholding tax on dividends
No withholding tax on dividends; however payers may apply the 5% retention rule until tax clearance is obtainedLaw No. 2 of 2008 (Amendment to Income Tax Decree No. 3 of 1955) — https://taxsummaries.pwc.com/kuwait/corporate/withholding-taxes
Withholding tax on interest / royalties
No formal WHT regime; tax is collected via the 5% contract retention mechanism rather than a fixed-rate WHT on interest or royaltiesLaw No. 2 of 2008 (Amendment to Income Tax Decree No. 3 of 1955) — https://taxsummaries.pwc.com/kuwait/corporate/withholding-taxes
5% retention rule
Payers must retain 5% of each contract/payment to a beneficiary until the beneficiary presents a tax clearance certificate from the DITMinisterial Resolution No. 44 of 2010 (Tax Retention) — https://taxsummaries.pwc.com/kuwait/corporate/tax-administration
CIT return filing deadline
Within 3 months and 15 days after the end of the taxable period; extensions of up to 60 days available on requestExecutive Regulations to Income Tax Decree (Law No. 2 of 2008) — https://taxsummaries.pwc.com/kuwait/corporate/tax-administration
CIT payment / instalments
Four equal instalments due on the 15th day of the 4th, 6th, 9th and 12th months after the tax period endExecutive Regulations to Income Tax Decree (Law No. 2 of 2008) — https://taxsummaries.pwc.com/kuwait/corporate/tax-administration
Late payment penalty
1% of unpaid tax per 30-day period (or part thereof) of delayExecutive Regulations to Income Tax Decree (Law No. 2 of 2008) — https://taxsummaries.pwc.com/kuwait/corporate/tax-administration
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Kuwait's corporate income tax is unusual: a flat 15% applies only to foreign (non-GCC) corporate bodies carrying on business in Kuwait. Companies wholly owned by Kuwaiti or GCC nationals are exempt from CIT but bear Zakat, NLST and KFAS contributions instead.
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Other Kuwait computations in the OpenAccountants Tax Library.