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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: 47
Year: 2013
Country: 🇰đŸ‡ŧ Kuwait
Official Name: Executive Rule No. 47 Concerning Tax treatment of Incorporated Bodies governed by Treaties for the Avoidance of Double Taxation

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. 47 Concerning tax treatment for the Incorporated Body subject to treaties for the avoidance of double taxation

Article No. 3 , 8 of the Executive Regulations

First: Control for the approval of exempted revenue under the treaties for the avoidance of double taxation:

  1. The exempted revenue and related cost shall be included with the attachments of the tax declaration submitted by the Incorporated Body.

  2. Submission of all the documents in support of the exempted revenue and its related costs.

Second: Expenses disallowed against the exempted revenues:

  1. The cost of exempted revenue (direct expenditures represented by all costs incurred directly by the Incorporated Body in order to earn the revenue).

  2. The portion of agent's commission related to exempted revenues.

  3. The portion of head office expenses related to exempted revenues.

  4. The portion of indirect expenses (general and administrative expenses) in the State of Kuwait, and within a percentage of 20% related to exempted revenue.

  5. The portion of insurance on the entire contract that relates to exempted revenue.

Third: Special and exceptional cases relating to the tax treatment of the incorporated body subject to treaties for the avoidance of double taxation shall be treated separately after consulting the Tax Department in this regard.