GTL Summary:

This Decision establishes the Executive Bylaws for tax administration, covering Articles 1 to 48. Its primary purpose is to regulate tax procedures and compliance obligations. Specifically, as detailed in Article 38, it outlines the strict conditions under which the Tax Administration will approve the release of withheld tax amounts. Such release is contingent upon the taxpayer either being exempt or having settled all due taxes. Alternatively, the taxpayer may provide a certified bank guarantee or another form of security acceptable to the administration, ensuring that all tax obligations are honoured before funds are released.

Document Type: EB - Executive Bylaws
Law: KIT (Law No. 2 of 2008 amending Decree No. 3 of 1955)
Decision Number: executive-bylaws-29-article-38
Year: 2008
Country: 🇰🇼 Kuwait
Official Name: Article 38
Last updated at: 2026-01-05 08:39:39 UTC

Chapter 10 : Guarantees of Tax Collection

Article 38

All or some retained amounts may not be released unless the Tax Administration agrees to issue the withheld release letter of these amounts. according to the following cases :

  1. If the incorporated body is not subject to tax, is exempted from it or realized loss.

  2. If the incorporated body settles all its due tax.

  3. If the incorporated body submits a certified bank guarantee or any other guarantee accepted by the Tax Administration to honour the due tax.

The Executive Rules and Regulations regulate the procedures and the conditions that relate in releasing income tax withheld.

Fast-loading version for search engines - Click here for the interactive version