Corporate taxes in Kuwait
Kuwait's income tax applies to foreign, non-GCC corporate bodies carrying on business in Kuwait, at a flat 15% of Kuwait-source taxable profit. Kuwaiti and GCC-owned companies are outside the income tax but Kuwaiti shareholding companies pay Zakat at 1%, listed companies pay the National Labour Support Tax at 2.5%, and from 1 January 2025 multinational groups with revenue of EUR 750 million or more pay a 15% Domestic Minimum Top-up Tax under Decree-Law 157 of 2024.
Key facts
| Income tax on foreign companies | 15% of Kuwait-source taxable profit |
|---|---|
| Zakat on Kuwaiti shareholding companies | 1% of net profit |
| National Labour Support Tax | 2.5% of net profit of listed companies |
| Contract retention | 5% of each payment withheld until a tax clearance certificate is produced |
| Domestic Minimum Top-up Tax | 15% for MNE groups from 1 January 2025 (Decree-Law 157/2024) |
| Authority | Ministry of Finance |
Opens the assistant with Kuwait already selected. Answers cite the law, guidance and cases they rest on.
The retention rule
Every Kuwaiti payer, including government bodies, must retain 5% of each payment to a contractor or supplier and release it only against a tax clearance certificate from the Ministry of Finance. Retention is not a final tax; it secures compliance, and the foreign contractor recovers it once its own filing is settled.
What counts as doing business in Kuwait
A foreign company can be taxable without a branch: supplying goods with installation, providing services in Kuwait, or holding a share in a Kuwaiti partnership or agency arrangement has each been treated as carrying on business. The Ministry's practice on agency and distribution is where most disputes sit.
Frequently asked questions
- Do Kuwaiti companies pay corporate income tax?
- No. Income tax applies to foreign, non-GCC corporate bodies. Kuwaiti shareholding companies pay Zakat at 1% and, if listed, NLST at 2.5%.
- What is Kuwait's corporate tax rate for foreign companies?
- A flat 15% of Kuwait-source taxable profit.
Primary sources
Related guides
Disclaimer: This page provides general tax information based on publicly available primary sources, reviewed on the date shown. Rules are conditional and change; the page may not reflect a change made after that date, and it is not a substitute for advice from a qualified tax professional on your specific situation.