GTL Summary:

This rule establishes the procedure for an Incorporated Body to secure the release of income tax retention withheld by other parties. It mandates the submission of a formal letter to the Tax Department detailing the contract, revenues, and retention amounts. The release is conditional upon the full settlement of all taxes and penalties due for the period, with the Tax Department offsetting any liabilities against the releasable amount. The rule further stipulates that retentions subject to legal disputes are withheld until the case is judicially settled.

Document Type: ER - Executive Rules & Instructions
Law: KIT (Law No. 2 of 2008 amending Decree No. 3 of 1955)
Decision Number: 13
Year: 2013
Country: 🇰🇼 Kuwait
Official Name: Executive Rule No. 13 Concerning release of the Tax Retention
Last updated at: 2025-12-19 09:23:03 UTC

Executive Rule No. 13 Concerning Release of the Income Tax Retention

Article No. 38 of the Executive Regulations

First: The Incorporated Body is required to submit an official letter to the Tax Department for release of the income tax retention withheld by the other parties dealing with the Incorporated Body. The letter should include the following:

Contracting
entity		Contract
name and
No.		Works executed during the period as per the attached
form of tax declaration		Revenues
as per tax
assessment
letter in
K.D.		Value of income
tax retention 5%
as per currency in
which retention is
made		Amount to be
released as per
currency in
which retention
is made
In contract
currency		In K.D.

Second: Income tax retention of the Incorporated Bodies will be released in accordance with the following conditions:

  1. Ensuring the Incorporated Body settles all the taxes and penalties due for the year (period) for which the income tax retention is required to be released.

  2. Offsetting the amounts due to the Tax Department and the amounts required to be released to the Incorporated Body.

Third: Income tax retentions related to Incorporated Bodies with which there is a legal dispute shall not be released until the judicial case has been settled and all taxes and penalties due are collected.

Fourth: Special and exceptional cases relating to the release of income tax retentions shall be treated separately after consulting the Tax Department in this regard.

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