Kuwait approves 10% tax on corporate profits

Kuwait’s cabinet has approved plans to levy a 10 percent tax on corporate profits as part of an economic reforms agenda, finance minister, Anas al-Saleh, told a press conference on Monday.

The government also approved repricing of some commodities and public services, he told reporters after the weekly cabinet meeting without indicating when the new measures would be implemented.

Companies operating in Kuwait pay various tax rates, though most of Kuwaiti companies don’t pay income tax. They instead pay contributions to the zakat tax and a scientific research fund.

The cabinet also discussed during the meeting the reform program which aims at rationalizing  public spending to shrink the budget deficit after the collapse of oil prices, according to state-run Kuwait News Agency (KUNA).

The discussions also included privatization of state services and entities to gradually increase the role of the private sector in the economy and turn the government into a regulator.

During the meeting, Central Bank governor, Ali Salamah, reiterated his country’s monetary policy of linking the Kuwaiti dinar to a basket of international currencies, KUNA reported.

In 2007, Kuwait removed its currency peg to the US dollar, and reverted to a basket of currencies.