National Labor Support Tax

National Labor Support Tax

National Labor Support Tax

Kuwaiti KSE-listed public shareholding companies are required to pay National Labor Support Tax at 2.5% of net profit for the year, which is payable to the Ministry of Finance (“MoF”) pursuant to Law No. 19 of 2000 concerning national labor support and encouraging Kuwaiti nationals to work in nongovernmental entities.

Companies subject to the Law:

Kuwaiti KSE-listed public shareholding companies

Added value to business entities from National Labor Support Tax services

  • Ensure compliance with the applicable legislative and regulatory requirements in State of Kuwait;
  • Mitigate risks of exposure to financial penalties and sanctions, and thus, save relevant expenses and costs; and
  • Enhance business entity’s reputation allowing it to continue doing business in Kuwait and secure new business.

Services provided by Baker Tilly

Certification of National Labor Support Tax Declaration:

In accordance with Law No. 19 of 2000 concerning national labor support and encouraging Kuwaiti nationals to work in nongovernmental entities and the Executive Regulations thereof, companies regulated by the Law shall file the tax declaration as audited by an audit firm, which is registered with Tax Department, not later than the fifteenth day of the fourth month following the end of the taxable period.

In addition, Baker Tilly Kuwait provides advisory services pertaining to tax objections and appeals against decisions made by MoF, if any.

References:

  • National Labor Support Law No. 19 of 2000 concerning national labor support;
  • Ministerial Resolution No. 24 of 2006 concerning rules for collection of National Labor Support Tax; and
  • Administrative Decision No. 877 of 2013 concerning the issuance of the executive rules and instructions of Law Decree No. 19 of 2000 concerning national labor support and encourage Kuwaiti nationals to work in nongovernmental entities.

 Other related services