GTL Summary:

Executive Rule No. 7 outlines the regulations for establishing the first accounting period for an Incorporated Body. It specifies that the standard fiscal period is the Gregorian year. However, an entity may apply to The Tax Department for an alternative first fiscal period, which must not exceed 18 months. This application must be submitted within three months of signing a contract or commencing activity. The Rule grants The Tax Department discretionary approval and stipulates that a lack of response within 30 days constitutes an implicit refusal.

Document Type: ER - Executive Rules & Instructions
Law: KIT (Law No. 2 of 2008 amending Decree No. 3 of 1955)
Decision Number: 7
Year: 2013
Country: 🇰🇼 Kuwait
Official Name: Executive Rule No. 7 Concerning approval of the first accounting period
Last updated at: 2025-12-19 09:23:03 UTC

Executive Rule No. 7 Concerning approval of the first accounting period

Article No. 10 of the Executive Regulations

First: The fiscal period approved by the Ministry of Finance shall be the Gregorian year commencing from 1st January to 31st December of the same year.

Second: The Incorporated Body may submit an application requesting the approval of its first fiscal period within three months from the date of signing the contract or the date of commencing the activity provided that such taxable period does not exceed 18 months after the approval of The Tax Department.

Third: The Tax Department may approve the first fiscal period of the Incorporated Body for which an application is submitted.

Fourth: No reply from The Tax Department within 30 days shall be considered an implicit refusal of the application.

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