Tax on expatriates from 2 percent to 5 percent on remittances

May 31, 20161 Comment

Update 17.11.2016 – The government is planning to impose taxes on expats’ remittances and companies, and privatize healthcare and education. According to informed government sources, a special ministerial committee has already prepared a package of economic and financial reform legislations to be presented by the new Cabinet and referred to the new parliament in mid-December. (Source : Kuwait Times)

Tax on expatriates from 2 percent to 5 percent on remittances

The Legislative Affairs Committee in the Parliament will soon endorse the proposal to impose tax on expatriates’ remittances, reports Al-Shahid daily quoting sources. Confirming that the government and Parliament have expressed support for the bill, sources disclosed the proposal is to impose two percent tax on remittances below KD 100, four percent on remittances ranging from KD 100 to KD 500, and five percent on remittances above KD 500.

Sources said the tax collected through these remittances will go directly to the State’s Treasury. Sources explained that tax will be collected through stamps to be issued by the Ministry of Finance while the money exchange companies and banks accredited by the ministry will be required to submit receipts to guarantee transparency of monitoring and auditing procedures.

Sources said any expatriate who will send money to his home country through other channels in order to avoid paying tax will be imprisoned for not more than six months and fined not more than KD 10,000.

It is worth mentioning that the total amount of remittances in the last five years reached almost KD 19 billion which is equal to the budget of the State for one year.

Source : Arabtimes

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  1. Guys kuwait is now the poor country so they break their own rules, rules of islam, tax is harram in islam but they want to earn money in harram. kuwaitis mentality is changing in harram direction. today they bring tax tomorrow alchol n after tomorrow same everything will be harram. so don't expact good things in kuwait, allah bless our poor kuwaitis and guide them in halal direction. ameen

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