Kuwait Direct Investment Promotion Authority (KDIPA) Director General issued DG Decision No. 16 of 2016 on the Mechanism for Granting Tax Exemption that entered into effect from the date of its issuance on January 12, 2016. The Decision was published in the Official Gazette on Sunday January 31, 2016 issue No. 1273 (Volume 62).
The provisions of this Mechanism for granting the tax exemption shall govern the investment entities that apply for tax incentives in accordance with Law No. 116 of 2013. The new mechanism links the tax exemption to performance based on three criteria relating to transfer of technology, job creation and training for nationals, and supporting local content.
This is developed with full approval of and collaboration with the Tax Department at the Ministry of Finance. The implementation of the mechanism entails submitting to KDIPA a “tax exemption report” on the approved form by a qualified auditing firm on behalf of the investment entity, verifying the satisfaction of the set criteria. Then KDIPA issues a “tax exemption certificate” annually to be submitted to the Ministry of Finance.
For more details on the mechanism, click here to view the translated version of this decision.
The Decision is also available under Legal Framework, KDIPA Laws & Executive Regulations on KDIPA website.