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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: 31
Year: 2013
Country: 🇰đŸ‡ŧ Kuwait
Official Name: Executive Rule No. 31 Concerning profits and losses from the disposal of fixed 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. 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.