Decree

:

Kuwait Income Tax Decree No. 3 for the year 1955, for rules and its amendments.

Incorporated Body

:

Each entity of corporate personality, irrespective of its place of incorporation, carrying out business or trade in the State of Kuwait directly or through an agent or carrying out business or trade in the State of Kuwait as agent of a third party.

Agent

:

Every and each natural or corporate person authorized by his principal to carry out business, trade or any of the activities stipulated in the law or to enter into a binding agreement with a third party on behalf and for the account of his principal within the limits of his powers. Therefore, the profit of Kuwaiti merchants resulting from the resale of goods bought and transported for his own account shall not be taxable in this regard.

Taxpayer

:

Any incorporated body subject to income tax imposed under the Decree.

Activity

:

Any commercial, non-commercial, industrial, real estate, transportation, contracting, speculation, brokerage or venture activity of commercial nature or performance of paid service of whatever type or mining of any natural wealth or water.

Taxable Period

:

Each calendar year of twelve (12) months ending on 31st of December unless the Tax Administration approves otherwise and provided that it shall not be more than 18 months.

Accounting Period

:

The period for which the taxpayer prepares his accounts.

Gross Income

:

The gross income realized by the taxpayer before allowable deductions.

Net Income

:

The gross income realized by the taxpayer after allowable deductions.

Taxable Income

:

Means net income.

Allowable Deductions

:

The allowed expenses and costs incurred by the institution in accordance with the provisions of Decree and this Bylaw.

Tax Declaration

:

A statement where the taxpayer declares the amount of tax payable by him, showing the results of his business during the taxable period.

Tax

:

The income tax imposed on any incorporated body under the provisions of Decree and this Bylaw.

Tax Director

:

The Minister of Finance or the person authorized by the Minister to perform any of his powers.

Tax Administration

:

The authority responsible for the application of the Decree and this Bylaw and its employees authorized to carry out the functions of tax administration.

Tax appeals committee

:

It is considered to be a committee or more than one committee constitutes to consider tax disputes for the submitted appeal by the body incorporated, in accordance to the executive rules and regulations.

Executive Rules and Regulations

:

Such rules and regulations issued by the Minister of Finance or his assign including the procedures regulating the execution of provisions of the Decree and executive Bylaws.