Law & Regulation
Income Tax Decree
Imposes a flat 15% corporate income tax on the Kuwait-sourced trade or business income of foreign-incorporated bodies corporate. 100% Kuwaiti- or GCC-owned companies are fully exempt. Law No. 2/2008 broadened the scope of activities considered subject to tax.
Legal Significance
What This Instrument Does
Applies a foreign-entity-only corporate income tax; Kuwait has no general corporate income tax for Kuwaiti/GCC-owned companies.
Why It Matters
Explains why Kuwait's general corporate tax burden falls almost entirely on foreign investors and contractors, directly relevant to the economics of every foreign-sponsored project in this dataset.
Legal Framework Position
- TaxPrimary / Framework Instrument
Instrument Overview
- Official Citation
- Decree No. (3) of 1955, as amended by Law No. (2) of 2008
- Instrument Type
- Decree
- Last Amended Date
- 1 January 2008
- Last Verified
- 30 September 2026