GTL Summary:

Article 1 of Law No. 2 of 2008 imposes an annual income tax on any body corporate, regardless of its place of incorporation, that conducts trade or business within the State of Kuwait. The tax is levied at a fixed rate of 15% on net taxable income. Taxable activities are broadly defined to include profits from contracts executed in Kuwait, commissions, industrial and commercial operations, asset disposals, property transactions, intellectual property licensing, and service provision. The article also establishes a significant exemption, stating that profits an incorporated entity realises from trading on the Kuwait Stock Exchange are exempt.

Document Type: Tax Law Article
Law: KIT (Law No. 2 of 2008 amending Decree No. 3 of 1955)
Article Number: 1
Country: 🇰🇼 Kuwait
Order: 1
Last updated at: 2025-12-19 09:23:03 UTC

Law No. 2 of 2008 on amending some Provisions of Kuwait Income Tax Decree No. 3 of 1955

Article 1[1]

An annual income tax is hereby imposed on the income of every body corporate, wherever incorporated, carrying on trade or business by the activity in the State of Kuwait, particularly:

  1. The profits realized from any contract that may be totally or partially completed in the State of Kuwait.

  2. The amounts collected from the sale, lease, granting franchise to use or exploit any trademark, patent design or copyrights.

  3. Commissions due or resulting from representation agreements or commercial mediation.

  4. The profits of the industrial and commercial business.

  5. Profits realized from disposing assets

  6. Profits resulting from purchase and sale of properties, goods, related rights and opening a permanent office in the State of Kuwait wherein sale and purchase contracts are concluded.

  7. Profits resulting from the lease of any properties.

  8. Profits resulting from rendering any services.

However tax amounts in accordance with this law is hereby fixed at 15% of net taxable income.

The profits of the incorporated entity resulting from trading operations within Kuwait Stock Exchange shall hereby be exempted from the tax already imposed under this law, whether it has been executed directly or via portfolios and investment funds.

Footnotes

[1]has been substituted by virtue of Article 1 of Law no.2 of 2008 on amending some of the Kuwaiti Income Tax Decree Provisions No.3 of 1955 to replace Article 1 of the Kuwait Income Tax decree no 3 of 1955 to replace Article 1 of the Kuwait Income Tax Decree No. 3 of 1955 and published in Kuwait Al- Youm Magazine Issue No. 856 year fifty four- Sunday 3/2/2008.

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