GTL Summary:

Executive Rule No. 31 establishes the tax treatment for profits and losses resulting from the disposal of fixed assets. This rule mandates that such financial outcomes, arising from sale, donation, transfer, or barter, are accepted based on supporting documentation like contracts and invoices. In the absence of sufficient documentation, a capital gain will be estimated, irrespective of the asset's depreciation status. It is a strict requirement to notify the Tax Department before any disposal, which must occur in the presence of their representative.

Document Type: ER - Executive Rules & Instructions
Law: KIT (Law No. 2 of 2008 amending Decree No. 3 of 1955)
Decision Number: 31
Year: 2013
Country: 🇰🇼 Kuwait
Official Name: Executive Rule No. 31 Concerning profits and losses from the disposal of fixed assets
Last updated at: 2025-12-19 09:23:03 UTC

Executive Rule No. 31 Concerning Profits and Losses from Disposal of Fixed Assets

Article No. 2, 46 of the Executive Regulations:

First: Profits and losses from the disposal of fixed assets (disposal includes sale, donation, transfer to other branches or to the head office or substitution and barter thereof) are accepted in accordance with their supporting documents such as, contracts, invoices and custom statements.

Second: in case no or insufficient supporting documents are submitted, a capital gain shall be estimated for such assets whether they are fully or partially depreciated, regardless of the type of disposal.

Third: Disposal of an asset or good is not permitted until after notifying the Tax Department and with attendance of their representative.

Fourth: Special and exceptional cases relating to profits and losses from the disposal of fixed assets shall be treated separately after consulting the Tax Department in this regard.

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