KUWAIT CITY, Nov 28: Tax Department in the Ministry of Finance will increase its staff two-fold the current number from around 300 to 600 as Kuwait is on the verge of implementing the valued added tax (VAT) regime in line with an agreement reached by the GCC countries, reports Al-Nahar daily.
The daily quoting a source noted concerned officials are working assiduously to ensure easy and simple implementation of VAT. He declared “no less than 200,000 companies will be covered in the new tax regime and that the number may increase”.
He noted shareholding companies, limited liability companies and other profit-oriented ones are to be included.
Undersecretary at the Ministry of Finance Khalifa Hamada said the country is likely to realize about KD450 million during the first year of implementing VAT, indicating 10 percent tax on the companies’ profits will fetch about KD 800 million.
He reiterated service providing companies that are offering services to citizens based on purpose for which they were established will be exempted from VAT.