Taxation of international executives
All tax information is summarized by KPMG Safi Al-Mutawa and Partners, the Kuwait member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the current laws of the State of Kuwait located on the Ministry of Finance.
Are there additional taxes in Kuwait that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, etc.
There is an airport departure tax of KWD3 on all air travelers with the exception of children under 12, deportees, diplomats, state guests, and transit passengers. This is incorporated in the ticket price.
Expatriates (or their employers) are required to pay a health care levy (KWD50) or hold basic local health care insurance under a law introduced in early 1999.
Custom duty is imposed on the supply of imported material at 5 percent of assessed value. Collection of custom duty takes place at the point of entry in the Gulf Co-operation Council (GCC) countries/territories comprising of Saudi Arabia, Kuwait, Oman, Qatar, United Arab Emirates and Bahrain. Subsequent movement of the goods within the GCC countries/territories does not attract custom duty.
Is there a requirement to declare/report offshore assets (e.g., foreign financial accounts, securities) to the country’s fiscal or banking authorities?
Please note that there is no personal income tax in Kuwait therefore no such disclosure from income tax perspective are required in Kuwait. However, the individuals, while opening a bank account and on periodic basis are required to declare their address in US or details of any person who holds POA in the US to identify the FATCA reporting of the income earned in Kuwait to the US.
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