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Document Type: ER - Executive Rules & Instructions
Law: KIT (Law No. 2 of 2008 amending Decree No. 3 of 1955)
Decision Number: 16
Year: 2013
Country: 🇰đŸ‡ŧ Kuwait
Official Name: Executive Rule No. 16 Concerning exemptions for Incorporated Body

Ministry of Finance - Tax Department - 2013 [Executive Rules & Instructions]

Executive Rules and Instructions of Kuwait Income Tax Decree No. 3 of 1955 as amended by law No. 2 of 2008

Executive Rule No. 16 Concerning exemptions for Incorporated Body

Article No. 13 of the Executive Regulations

Law under which exemptions are granted to the Incorporated Bodies carrying on business in the State of Kuwait:

First: Laws granting provisional exemptions

  1. Law No. 116 of 2013 concerning the promotion of direct investment in State of Kuwait:

    • Exemption from income tax or any other taxes for a period not exceeding ten years from the actual commencement of the project operation as well as exempting any new investment in the project from such taxes for similar exemption period given to the original investment at the project initiation.

    • The treaties for the avoidance of double taxation and investment promotion and protection conventions.

Second: Laws granting full exemptions:

  1. Law No. 26 of 1995 concerning free zones:

    - The following shall be tax exempted:

    1. projects initiated in free zones and profits achieved from activities inside such zones;

    2. products imported to free zones or exported thereof and

    3. tools and equipments required for business in free zones of whatever type.

  2. Decree bylaw No. 108 of 1976 amended by Decree No. 53 of 1979 concerning the exemption of Arab and foreign airlines from tax.

    - Exemption of Arab and foreign airlines whose countries decide to provide Kuwaiti airlines with the same treatment.

    • Any Incorporated Body obtaining provisional exemption shall not be relieved from filing a tax declaration as per the law mentioned in First thereof.