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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: 55
Year: 2013
Country: 🇰đŸ‡ŧ Kuwait
Official Name: Executive Rule No. 55 Concerning conditions for accepting letters of guarantee

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. 55 Concerning the conditions of accepting letters of guarantee

First: The Incorporated Body shall submit an official letter to the Tax Department requesting the acceptance of the guarantee letter in accordance with the following conditions:

  1. The Incorporated Body that submitted the tax declaration and settled the tax due accordingly:

    A - The Incorporated Body shall submit evidence of the contract completion from the contractual party.

    B - Elapse of one year from the date of submitting the tax declaration without issuance of the tax assessment in the case that the contract has not been completed.

  2. In the case of an Incorporated Body whose tax declaration is not yet due for submission, the Incorporated Body shall provide evidence of the contract completion from the contractual party.

  1. Cases which shall not be considered:

    A - An Incorporated Body that does not submit the tax declaration.

    B - Upon issuance of the tax assessment letter for the Incorporated Body.

Second: In all cases, the guarantee letters submitted should not have an expiry date and shall only be cancelled by the Ministry of Finance after settlement of all the taxes and penalties due, and to fulfill all the conditions deemed necessary by the Ministry.

Third: Special and exceptional cases relating to the conditions of accepting letters of guarantee shall be treated separately after consulting the Tax Department in this regard.