Friday , September 21 2018

‘US companies in Kuwait have reservations against FATCA’ – ‘Many against JASTA’

KUWAIT CITY, Jan 15: Strategic Consultant at Ernst &Young Company, Executive Member and Head of the Coordinating Committee for American Business Council in Kuwait Abdul-Aziz Al-Othman affi rmed that American companies in Kuwait have reservation against the implementation of FATCA, reports Al-Nahar daily. Al-Othman explained the reservation is based on implementation of the law on the US companies only, while companies of other countries do not pay tax. He said the procedure is detrimental to the competitive capability and reduces profi t margin. He declared that many US citizens resident in Kuwait and other GCC countries are against the Justice against Sponsors of Terrorism Act (JASTA), because it affects their interests in Kuwait.

He anticipated the government will do away with implementing value added tax (VAT) law since the parliament has rejected it. “This is possible, even though the government has carried out several procedures toward its implementation and common decision taken with other GCC countries at this time of unstable and dwindling oil prices”.

Talking about the economic strategic partnership with the US, Al-Othman disclosed that Kuwait is among the countries that issue least American bonds worth about $31 billion compared to countries like China whose bond reaches $1.2 trillion based on the global reports of 2016. He stressed the value of Kuwaiti-American investments in Kuwait is about $300 million, while the investments of Kuwaitis in America have reached $1.5 billion. He reiterated the investments are in diverse sectors, including real estate, retail, technology and capital markets.

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