Kuwait acts on ‘tax violations’

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KUWAIT CITY, June 23: The Ministry of Finance has taken decisive action against three companies for non-compliance with Kuwait’s income tax regulations, highlighting serious issues with their accounting practices, reports Al-Jarida daily. Following a thorough examination of their financial records and documents, the Ministry sent notifications to these companies emphasizing the necessity of adhering to Kuwait’s Income Tax Decree No. 3 of 1995, as amended by Law No. 2 of 2008, and its Executive Regulations, particularly regarding the maintenance of proper accounting books and records. Sources said the Ministry of Finance estimated the profits of these companies based on available tax returns for previous fiscal years. It was found that some of these companies had failed to maintain the required accounting books and records, as mandated by Kuwaiti tax laws.

Consequently, the Ministry decided to estimate their profits at 30% of their revenues, disregarding the companies’ reported operational results. In response to these findings, the Ministry of Finance has initiated steps to enforce Article Eight of the Income Tax Decree, which allows for the imposition of fines of 1% for every thirty days or part thereof in case of delayed payment. Moreover, Article 24 of the Executive Regulations specifies a sixty-day period from the date of assessment notification within which companies may submit objections to their tax assessments. After this period, objections may not be considered. The Ministry underscored the urgency of prompt payment in accordance with Kuwait’s income tax provisions and alerted the companies to settle their outstanding tax liabilities swiftly. This action aims to ensure compliance with tax regulations and to uphold fiscal discipline in Kuwait’s corporate sector.

This news has been read 2515 times!

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