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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: 24
Year: 2013
Country: 🇰đŸ‡ŧ Kuwait
Official Name: Executive Rule No. 24 Concerning pre-operating and maintenance expenses

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. 24 Concerning Pre-operating and Maintenance Expenses

Article No. 3 of the Executive Regulations

First: Pre-operating expenses

  1. Costs and expenses prior to signing the contract are not considered as expenses related to the activity in the State of Kuwait since it is attributable to the head office.

  2. Costs and expenses prior to operations and after signing the contract are treated as incorporation expenses and shall be deducted in the year it is realized in accordance with the documentary inspection process.

Second: Maintenance expenses

Maintenance expenses are allowed in the period during which maintenance operations incurred with no provision to be made for maintenance expenses. The maintenance duration shall be considered as a period for carrying out the activity.

Third: Special and exceptional cases relating to pre-operating and maintenance expenses shall be separately treated after consulting the Tax Department in this regard.