Every body corporate subject to Kuwait income tax must apply to register with the tax administration within thirty (30) days of the date its contract is signed or its activity begins, then apply for a tax card, and may later need to obtain a tax clearance certificate confirming there are no outstanding tax liabilities.

Registration with the Tax Administration

The executive rules and instructions provide that every body corporate must apply to the tax administration within thirty (30) days of the date its contract is signed or its activity begins, by completing the prescribed registration form, which must include the body corporate's basic data such as its name in Arabic and English, its nationality, its activity and the date it began, its address, its appointed audit office, and its financial year.

This registration step is the foundation on which the tax administration builds the body corporate's file, and it is later relied upon when tax returns are filed, exemptions granted are tracked, and any correspondence or contracts related to the body corporate's activity in Kuwait are handled.

Obtaining the Tax Card

After registration, the body corporate applies for a tax card on the prescribed form, and it is classified according to its registration sequence, the type of its activity, the number of the law applicable to it, and its year of registration, and the tax card is issued within a week of the date the request is made and the registration data is completed and approved. The card includes basic data such as the card number, its date of issuance, the body corporate's name, its activity, its nationality, its address, the type and duration of any exemption, and the date the tax return is filed.

The tax card is renewed annually from its date of issuance together with the filing of the tax return, and every body corporate must present its tax card to the competent authorities upon request.

The Guarantee Release Certificate and the Tax Clearance Certificate

A body corporate is entitled to request a certificate releasing a guarantee retention, or a tax clearance certificate, by submitting a letter addressed to the Ministry of Finance's undersecretary, directed to the tax subjection and planning department, specifying the person authorized to follow up on and receive the certificate and approved by the body corporate, accompanied by the memorandum of incorporation and its latest amendment, copies of the licence, commercial registration, civil ID, and signature authorization, the agency registration certificate, and any concluded contracts and agreements.

Together with the tax card, these certificates are the official tools the tax administration relies on to establish a body corporate's standing with respect to its tax obligations at the different stages of its dealings with government and private bodies in Kuwait.

Legal References

For questions about your specific situation, you can ask the Kuwait Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.