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Document Type: BL - Bylaws
Law: KIT (Law No. 2 of 2008 amending Decree No. 3 of 1955)
Decision Number: 29-article-5
Year: 2008
Country: 🇰đŸ‡ŧ Kuwait
Official Name: Article 5

Ministerial Decision No. 29 of 2008 [Executive Bylaws]

Article 5

Chapter 1 : Income Tax

Second : Taxable Income

Article 5

The expenses of the head office shall be debited to the direct revenues realized in the State of Kuwait after deduction of the following :

  1. The works executed by the subcontractors or the like.

  2. Incidental revenues.

  3. Reimbursed costs.

  4. Design costs (except for the design costs of the head office).

The branch share of the head office expenses shall be according to the following rates :

  1. The Incorporated Bodies operating in Kuwait are allowed to calculate and add (1.5 %) of the direct revenues realized in the State of Kuwait less the amount stated in paragraph 1 of this Bylaw.

  2. The Incorporated Bodies which are partners in Kuwaiti companies or firms or participating with Kuwaiti companies or firms in carrying out a contract are allowed to calculate and add (1%) of the direct revenues realized in the State of Kuwait less the amount stated in paragraph 1 hereof. This rate shall be deducted form the share of the foreign partner.

  3. The Incorporated Bodies operating in the field of insurance in the State of Kuwait are allowed to calculate and add (1.5 %) of the direct premiums less the reinsurance rate and plus collected insurance commission.

  4. The Incorporated Bodies operating in the field of banking business in the State of Kuwait are allowed to calculate and add (1.5 %) of the direct revenues realized in the State of Kuwait less the amount stated in paragraph 1 of this Article.