Kuwait Tax Overview

Kuwait tax system at a glance

Kuwait has no personal income tax and no VAT/GST in force. Direct corporate income tax applies only to foreign (non-GCC) corporate bodies; locally owned and GCC-owned companies instead bear a set of profit-based contributions (Zakat, NLST, KFAS).

• Standard tax year — Calendar year (12 months); aligns with the company's accounting period (Kuwait Income Tax Decree No. 3 of 1955 (as amended by Law No. 2 of 2008))
• Currency — Kuwaiti dinar (KWD) (Central Bank of Kuwait Law No. 32 of 1968)
• Tax authority — Department of Income Tax (DIT), Ministry of Finance (Ministry of Finance — Department of Income Tax)
• Personal income tax — None — Kuwait imposes no tax on individuals' income, salaries or wages (Kuwait Income Tax Decree No. 3 of 1955)
• Residence / taxing basis — No residence concept for individuals (no PIT). Corporate tax is sourced — it applies to income arising from activity carried on in Kuwait, not worldwide income (Kuwait Income Tax Decree No. 3 of 1955 (as amended by Law No. 2 of 2008))
• Headline corporate income tax rate — 15% flat (on foreign corporate bodies' Kuwait-source profits) percent (Law No. 2 of 2008 (Amendment to Income Tax Decree No. 3 of 1955))
• VAT / GST — None in force. The GCC VAT Framework Agreement (2017) is signed but not yet enacted by Kuwait; draft law remains under preparation (GCC VAT Framework Agreement (2017))
• Domestic Minimum Top-up Tax (DMTT) — 15% effective minimum tax on in-scope multinational groups (consolidated revenue EUR 750m+), effective for financial years beginning on or after 1 January 2025 percent (Kuwait DMTT Law (Decree-Law No. 157 of 2024); Executive Regulations Ministerial Resolution No. 55 of 2025)
• Main annual corporate filing deadline — Within 3 months and 15 days after the end of the taxable period (Executive Regulations to Income Tax Decree (Law No. 2 of 2008))
• Social security (PIFSS) remittance — Monthly — by the 15th day of the following month (Social Security Law No. 61 of 1976)