🇰🇼 Corporate Tax in Kuwait

Headline rate: 15% (foreign entities only; Kuwaiti/GCC-owned companies: 0%)

Company with Limited Liability (WLL)

The critical distinction in Kuwait: Kuwaiti and GCC-national-owned companies pay 0% corporate income tax. Foreign-owned entities (or the foreign-owned share of profits in a mixed entity) are subject to 15% corporate income tax. This creates a strong incentive for structuring with a Kuwaiti or GCC partner. No VAT is currently in force, though implementation is expected under the GCC Unified VAT Framework. Kuwait levies Zakat at 1% on profits of Kuwaiti-listed companies. No personal income tax. Withholding tax does not currently apply, but the foreign entity tax is assessed on net adjusted profits.

Kuwaiti Shareholding Company (Closed) (KSC (Closed))

Closed KSCs follow the same tax regime as WLLs: foreign-owned shares of profits are taxed at 15%, while Kuwaiti/GCC-owned shares are exempt. Kuwaiti-listed companies are additionally subject to 1% Zakat on profits and a National Labour Support Tax (NLST) of 2.5% of net profits. No VAT currently applies.

Key Facts

Double tax treaties: 61
Memberships: GCC, WTO, UN, Arab League, OPEC, OAPEC
Legal system: Civil law with Sharia elements
Fiscal year: January – December (or company-chosen)

This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.