How much tax is charged for outdoor power supply in Kuwait City

Income from leasing activities is considered as taxable under the domestic tax law. The net profit from leasing activities is subject to tax at 15%. There are specific provisions in certain tax treaties, whereby lease of aircrafts are exempt from tax in Kuwait. However, this is currently being reviewed by the KTA on a case-by-case basis.

Royalty/License income earned from Kuwaiti customers is subject to tax in Kuwait. This is irrespective of any physical presence in Kuwait. The gross royalty amounts earned from Kuwaiti customers are subject to tax at 15%. The tax due may be reduced where the franchisor/licensor is a resident of a country which has a tax treaty with Kuwait.

The Kuwait Tax Law does not have provisions that cover income from subscription services. Typically, the KTA takes a position on subscription services as being subject to tax irrespective of physical presence and treats them as royalty income or on a minimum 30% deemed profit margin. The net profit is subject to tax at 15%.

Payments from a contractor/subcontractor that are yet to settle their tax liabilities with Kuwaiti authorities and obtain a certificate should be withheld at a rate of 5%. No property or transfer taxes are levied in Kuwait. Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

IGHTS INTO KUWAIT TAX Under the Kuwait tax law and regulations, any income earned from carrying out trade or business in the State of Kuwait, either directly or thro gh an agent, is taxable. An agent is a person or entity authorized by a principal to carry out business or activity on behalf of and for the account of the principal

Only companies with foreign ownership are subject to corporate income tax in Kuwait on their Kuwait-sourced income. Branches are also taxed at 15%. Capital gains on the sale of assets and shares are considered ordinary income and subject to the standard tax rate of 15%.