Ministerial Decision No. 29 of 2008 [Executive Bylaws]
Chapter 1 : Income Tax
Second : Taxable Income
Article 4
The account would be on the depreciation of the assets owned and used by the incorporated body for carrying out business or trade in the State of Kuwait shall be depreciated on the straight line method shown on schedule :
Type of Asset | Annual Depreciation Rate |
|---|---|
Buildings | 4% |
Pre-fabricated Buildings | 15% |
Furniture and office equipment | 15% |
Plants and equipment | 20% |
Drilling equipment | 25% |
Electrical and electronic appliances | 15% |
Computers and accessories | 33.3% |
Software | 25% |
Cars | 20% |
Trucks and trailers | 15% |
Buses | 20% |
The Tax Director may deviate from the above table if the asset operation conditions are unusual or uncustomary with respect to the respective activity of asset.
The taxpayer may apply to the Tax Administration to calculate the depreciation installment by any way other than the straight-line method ninety (90) days before the time of filing the tax declaration.
The Tax Administration may respond to such request if based on reasonable grounds according to the tax accounting rules and standards.