Tax proposed on expat money transfers – Rate up to 5%

May 2, 20160

MP Faisal Mohamed Al-Kandari has proposed imposing tax on money transfers of expatriates. In a press statement, Al-Kandari pointed out the State of Kuwait hosts about three million expatriates who transfer money to their countries, which reached KD 19 billion in the last five years and this amount is equivalent to the national budget of Kuwait for one year.

He said that imposing tax on such transfers will generate new income for the government, which will ensure better services for the expatriates and citizens. He disclosed the income from this tax will not be less than KD 20 million per year, taking into consideration the minimum amount transferred to other countries is about KD 2 billion per year.

He believes this will be a source of alternative income for the government, stressing this tax should be applied fairly and the income should go to the treasury of the government to improve services.

Article One of the law stipulates the need to impose tax on money transferred outside Kuwait.

Article Two stipulates the tax percentage as follows: two percent of the amount if the transfer is less than KD 100, four percent if the amount ranges from KD 100 to KD 499, and five percent for transfers above KD 500.

Article Three stipulates that collection of the tax will be through financial stamps from the Ministry of Finance which will be sent to the accredited exchange companies and banks for control and audit.

Article Four states the penalties include six months imprisonment and fine of not more than KD 10,000 on those who do not apply the law or those who do not transfer money through legal process.

Article Five mandates the Prime Minister and all concerned authorities to implement the law from the date of its publication in the official gazette.

Meanwhile, the parliamentary Legislative and Legal Affairs Committee on Sunday unanimously approved a number of bills, including the proposal to amend the second paragraph of the second item of Article Five of Nationality Law No. 15/1959.

Source : Arabtimes
By Abubakar A. Ibrahim Arab Times Staff

Tax proposed on expat money transfers – Rate up to 5% was last modified: by

Filed in: AllExpats in KuwaitLocal News
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