Kuwait tax
Special regime for new residents: KDIPA-licensed investment entities: income tax exemption.
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Special regimes for new residents
Special regime
KDIPA-licensed investment entities: income tax exemption for up to ten years
Tax relief
Details
- On: Income of the licensed investment entity
Entities licensed under the direct investment law can be exempt from income tax and other taxes for up to ten years from the start of actual operations, with a longer exemption for expansions. 2
Taxed on
Income of the licensed investment entity.
Who it applies to
- Entity is licensed by the Kuwait Direct Investment Promotion Authority under Law 116 of 2013.
- The exemption runs for a period not exceeding ten years from the actual start of operations.
- Expansions of a licensed entity are exempt for at least the period granted to the original entity.
Exclusions
- Exemptions apply to the licensed entity and its approved investment, not to individuals’ personal income.
Tax residence
Linked to the licence and the approved investment.
Visas
The investor residency route covers owners and executives of the same licensed entities.
Other taxes
Imports needed for the investment can be wholly or partly exempt from customs duties and taxes.
Checked against official sources on Change log
Which visas the regimes apply to
- KDIPA-licensed investment entities: income tax exemption: KDIPA investor residency. The investor residency route covers owners and executives of the same licensed entities.
Standard rules and foreign-source income
Standard rules
Income tax decree: 15% tax on bodies corporate; none on individual employment income
15% tax
Details
- Who: A body corporate carrying on trade or business through activity in Kuwait pays the tax
Kuwait’s income tax decree, as amended in 2008, taxes bodies corporate carrying on business in Kuwait at 15% of net taxable income and contains no income tax on individuals’ salaries. 1
Taxed on
Net taxable income of bodies corporate, wherever incorporated, carrying on trade or business through activity in Kuwait; profits on trading on the Kuwait Stock Exchange are exempt.
Who it applies to
- A body corporate carrying on trade or business through activity in Kuwait pays the tax.
Exclusions
- The decree imposes the charge on bodies corporate; individuals’ salaries are not taxed under it.
- Profits from trading on the Kuwait Stock Exchange, directly or through portfolios and funds, are exempt.
Tax residence
The charge turns on carrying on business through activity in Kuwait, not on days of presence.
Visas
No link between residence permits and the income tax decree.
Other taxes
Social-security contributions, Zakat and the national labour support tax fall under other laws and are not part of the income tax decree.
Checked against official sources on Change log
VAT, social security and other taxes
- Social-security contributions, Zakat and the national labour support tax fall under other laws and are not part of the income tax decree.
- Imports needed for the investment can be wholly or partly exempt from customs duties and taxes.
Questions people ask
Who qualifies for KDIPA-licensed investment entities: income tax exemption?
Entity is licensed by the Kuwait Direct Investment Promotion Authority under Law 116 of 2013. The investor residency route covers owners and executives of the same licensed entities.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (2)
Official sources
- Law No. 2 of 2008 amending the Kuwait Income Tax Decree No. 3 of 1955 · Kuwait Direct Investment Promotion Authority (official copy of the law) · checked 2026-10-11
- Guarantees and incentives for direct investors · Kuwait Direct Investment Promotion Authority · checked 2026-10-11