- The provisions of this law do not apply to those whose salary is less than 350 dinars.
Kuwait City, Oct 13: MP Osama Al-Manawer submitted a proposal for a law to impose an income tax on expatriates at a rate of 5%, pointing out in his explanatory note that “the purpose of the law is financial and economic protection in the country. Reported by Al-Rai.
The efforts of the state to provide full services to those who chose to reside and work in it and what the country suffers from the problem in the demographics.
As no laws were issued before that deal with the issue of annual income tax for residents like the case of other countries, and if the law came not to impose a tax on annual income, but with a view that has less impact on residents, by collecting at least 5% of remittances.
when the total amount exceeds the annual financial transfer abroad is 50% of the annual income, in a manner that achieves a balance and ensures that the state enhances services that ensure the availability of residence and work in it, and those whose monthly salary is less than 350 dinars are excluded from the application of the law.
The proposal included in the first article that “every bank or financial institution concerned with banking operations and financial transfers shall undertake the management of the financial tax on transfers outside the State of Kuwait from non-nationals, and the collected taxes shall be submitted to the state’s public treasury.”
The second article states that “the Minister of Finance shall issue a decision to determine the tax rate on remittances abroad at no less than 5% of the value of remittances if they exceed 50% of the annual income, and the annual income is all that the resident receives and deposited in his bank accounts since the beginning of the year. Gregorian and until the last day, according to what is proven under Law 9 of 2019 regulating the exchange of credit information and for the parties that are licensed in accordance with its provisions, and they may take over the tax administration.
The third article states: “At the end of each year, the due tax is calculated and its payment is due, and the state’s right to collect it does not lapse with the statute of limitations. An exception from calculating the period in the first year of implementing the provisions of the law is what is missing from the completion of a full Gregorian year, so the annual income is calculated over the remaining period until the beginning of the Gregorian year.
Article 4 states that “the provisions of this law do not apply to those whose salary is less than 350 dinars.”