Kuwait Country Profile
Tax Administration
Individual Corruption
According to the Heritage Foundation 2011, there is no individual income tax, nor value-added tax and sales tax in Kuwait. However, a small percentage of the households who had contact with tax revenue services in 2008 reported to have paid a bribe, as illustrated in Transparency International’s Global Corruption Barometer 2009.
Business Corruption
According to Global Integrity 2008, tax laws are not enforced uniformly and without discrimination. Only foreign-owned companies and the foreign-owned portions of joint ventures are subjected to corporate income tax, both to domestic and offshore income. The US Department of State 2011 reports that there are tax ambiguities in terms of defining foreign companies' taxable presence in Kuwait and several companies are involved in disputes over their tax liabilities.
Frequency
The World Bank & IFC: Doing Business 2011:
- The average company spends 118 hours a year making 15 payments separate tax payments at a total tax rate of 15.5%.
Transparency International: Global Corruption Barometer 2009:
- 12% of the households who had contact with tax revenue services throughout 2008 report to have paid a bribe.
