Kuwait Foreign Corporate Income Tax (CIT) Calculator
Calculate statutory 15% corporate tax on foreign corporate bodies, allowable head office overhead deductions, and mandatory 5% contract retention in Kuwait.
🏢 بيانات الأرباح والعقود للشركات الأجنبية (Contract & Profit Input)
الضريبة تفرض فقط على حصة الشريك الأجنبي.
📊 احتساب ضريبة الدخل وحجز الـ 5% (Tax & Retention Assessment)
| البند الضريبي (Statutory Tax Line) | النسبة / المعيار | القيمة (KWD د.ك) |
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❓ الأسئلة القانونية والتنظيمية الشائعة (FAQ)
Which corporate entities are subject to corporate income tax in Kuwait?
Under Amiri Decree No. 3 of 1955 as amended by Law No. 2 of 2008, income tax is levied exclusively on foreign corporate bodies carrying on business or trade in Kuwait, directly or through an agent, or participating as foreign partners in Kuwaiti corporate entities.
What is the corporate tax rate for foreign companies in Kuwait?
Law No. 2 of 2008 abolished the previous progressive bracket system (which reached 55%) and introduced a flat rate of 15% on the foreign corporate body's net taxable profit earned from sources within Kuwait.
Are 100% Kuwaiti or GCC-owned companies subject to corporate income tax?
No. Entities wholly owned by Kuwaiti or GCC nationals are entirely exempt from corporate income tax. However, Kuwaiti shareholding companies (KSC) are subject to 2.5% National Labor Support Tax (NLST), 1% Zakat, and 1% contribution to the Kuwait Foundation for the Advancement of Sciences (KFAS).
What is the mandatory 5% tax retention rule under Article 37?
Under Article 37 of the Executive Regulations, every ministry, public authority, or private enterprise contracting with a foreign entity must retain 5% of the total contract value from each invoice until the foreign company presents a formal Tax Clearance Certificate issued by the Ministry of Finance (MOF).
What head office overhead expense deductions are permitted for foreign branches?
Head office administrative and general expenses are strictly capped by the Department of Income Tax: foreign contractor branches operating in Kuwait may deduct a maximum of 1.5% of total revenue (minus subcontracting costs), and banking/financial branches are capped at 1.0%.
Engr. Muhammad Shahzad
Verified Gulf Statutory Systems & Fiscal SpecialistChartered Systems Engineer and Public Finance Modeler. Specializing in GCC labor frameworks (Kuwait Labor Law No. 6 of 2010), Amiri Decree No. 3 of 1955 foreign corporate income tax schedules, PIFSS social security architectures, and Ministry of Electricity & Water utility tariffs under State of Kuwait statutes.