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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: 29
Year: 2013
Country: 🇰đŸ‡ŧ Kuwait
Official Name: Executive Rule No. 29 Concerning leased assets

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. 29 Concerning Leased Assets

Article No. 3, 17, 4, 46 of the Executive Regulations

1. Assets leased from the Head office, subsidiary, or related company:

  1. If the Incorporated Body submitted the custom statements and documents relating to those assets, the rental value shall be approved, not exceeding the depreciation charge of those assets for the period during which they have been used in Kuwait. The Head office subsidiary, or related company should be accounted for the lease value as income.

  2. If it is not possible to determine the asset's value on which depreciation is calculated, the cost of the assets leased may not be approved and the expense is fully eliminated.

2. Assets leased from parties not related to the Incorporated Body:

If the Incorporated Body submitted the statements and documents relating to those assets, the rental value shall be approved, according to the documentary inspection and accounting the leased Incorporated Body for the lease income.

Third: Special and exceptional cases relating to the leased assets shall be treated separately, after consulting the Tax Department in this regard.