GTL Summary:

Document Type: ER - Executive Rules & Instructions
Law: KIT (Law No. 2 of 2008 amending Decree No. 3 of 1955)
Decision Number: 45
Year: 2013
Country: 🇰🇼 Kuwait
Official Name: Executive Rule No. 45 Concerning foreign management fees
Last updated at: 2025-11-04 11:19:41 UTC

Executive Rule No. 45 Concerning the Foreign Management Fees

Article No. 3 of the Executive Regulations

First: Foreign management fees are the amounts paid to each Incorporated Body that exercises management activities in return of fees under contract stipulations.

Second: As for Incorporated Body participating in a Kuwaiti company, these fees shall be accepted as costs for the company as a whole and at the same time shall be added to the full net profit of the Incorporated Body.

Third: For the fees acquired by the Incorporated Body in return for complete management of a Kuwaiti company, the Incorporated Body shall be charged for these fees as earned revenues.

Fourth: In case of deemed profit inspection, these fees shall be treated as net full profit since such fees are considered as revenues without expenses in return.

Fifth: Special and exceptional cases relating to foreign management fees shall be separately treated after consulting the Tax Department in this regard.

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