Total Tax Collected In 2014 Is KD 100.3 Million
Category: Kuwait Local News
total-tax-collected-in-2014-is-kd-100.3-million_kuwait

The total tax collected in the last fiscal year that ended on March 31, 2015 was about KD 100.3 million, which is an increase of 12.4 percent from the total tax of KD 89.2 million collected last year. About 48.5 percent of these taxes were collected from the foreign companies and the rest from the companies listed under the Kuwait Stock Exchange and the holding companies, reports Al-Qabas daily.According to the latest statistical report issued by Ministry of Finance’s Tax Department, four tax laws govern the tax collection process and the tax amounts to be paid by various establishments in the country. These laws include the Income Tax Law 3/1955, which was amended by Law 2/2008.

This law imposes a net flat corporate tax rate of 15 percent on foreign companies that run businesses in Kuwait. In line with the aforementioned law, KD 45 million was collected as tax from the foreign establishments in the country, which constitutes 48.5 percent of the total tax collected in Kuwait during the last fiscal year. The report indicated that majority of the taxes collected from a total of 835 foreign companies were from those dealing with provision of services.

These companies paid a total of KD 25.3 million, followed by general trading and contracting companies, which paid KD 13.2 million as taxes. Investment companies paid a total of KD 4 million followed by companies running restaurants which paid KD 1.7 million and companies operating in the insurance sector which paid KD 1.6 million as taxes. The National Labor Support Tax, which is governed by Law 19/2000, is intended to encourage the employment of Kuwaiti nationals in non-governmental institutions. Only companies listed under the Kuwait Stock Exchange are required to pay this tax, which is 2.5 percent of annual net profits.

About 51 million was collected as National Labor Support Tax in the last fiscal year, most of which were from Kuwaiti companies governed by this law. This constituted 50.8 percent of the overall tax. Regarding Zakat tax, Law 46/2006 mandates joint stock companies to pay Zakat worth one percent of the companies’ net profit and this tax contributes to the overall national budget.

According to the report, the total tax collected in pursuant to this law was KD 23 million, which is an increase of 15.5 percent from KD 19.9 million collected last year.

Meanwhile, tax collected from profit distribution reached KD 3.02 million, which is an increase of 51.5 percent from about KD 2 million collected last year. In addition, the Tax Department of Ministry of Finance collected KD 21 million from property ownerships and transfers of ownership of land and real estate.

 

SOURCE: ARABTIMES

07 Sep, 2015 0 972
Posted Comments
Kuwait Local News
Kuwait Local News
Crime News New Rules Entertainment
Entertainment