Middle East · Tax guide
Kuwait
Kuwait taxes foreign companies doing business in Kuwait at 15%, while Kuwaiti companies pay Zakat and other levies instead. There is no VAT, and payers retain 5% from contractors until they show a tax clearance. Large multinational groups pay a domestic minimum top-up tax. Taxes are administered by the Ministry of Finance.
At a glance
- Income tax on foreign companies
- 15%
- Zakat
- 1%
- Contract retention
- 5%
- Global minimum tax
- 15%
On profits from business in Kuwait
On net profits of Kuwaiti shareholding companies
Held until a tax clearance is presented
Groups with revenue of €750 million or more
Income tax on foreign companies
Foreign corporate bodies carrying on business in Kuwait, directly or through an agent, pay income tax at 15% on their taxable profits. Kuwaiti and GCC-owned companies are not subject to this income tax.
Levies on Kuwaiti companies
- Zakat: 1% of net profits of Kuwaiti shareholding companies.
- National Labour Support Tax: 2.5% of net profits of Kuwaiti companies listed on the stock exchange.
- Kuwait Foundation for the Advancement of Sciences: a contribution of 1% of profits from Kuwaiti shareholding companies.
Retention on contract payments
Government bodies and companies paying contractors and subcontractors must retain 5% of each payment, releasing it only when the contractor presents a tax clearance certificate from the Ministry of Finance. This is how Kuwait collects tax from foreign contractors.
No VAT yet; global minimum tax
Kuwait has not introduced VAT or excise tax under the GCC agreements.
Since 2025, members of multinational groups with revenue of €750 million or more pay a domestic minimum top-up tax at 15%, which applies to Kuwaiti and foreign-owned group companies alike.
Key dates
- On the 15th day of the fourth month after the year-endIncome tax return for foreign companies
- On final payment of a contractPresent a tax clearance certificate to release the retention
Figures and sources
7 figures- Income tax on foreign corporate bodies doing business in Kuwait15%Checked against the official source
- Retention on payments to contractors until they present a tax clearance5%Checked against the official source
- Zakat on net profits of Kuwaiti shareholding companies1%Under professional review
- Domestic minimum top-up tax rate15%Checked against the official source
- Group revenue (in two of the last four years) for the domestic minimum top-up tax€750 millionChecked against the official source
- National Labour Support Tax on net profits of listed Kuwaiti companies2.5%Under professional review
- Contribution to the Kuwait Foundation for the Advancement of Sciences1%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Kuwait based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a Kuwaiti tax adviser before making compliance decisions.