KPMG in Kuwait provides information about recent changes to the Kuwait Tax Authority’s (KTA) procedures for submitting tax appeal letters and tax payments, along with new guidelines for financial institutions related to the exchange of tax information.
In a recent letter, the Kuwait Tax Authority (KTA) asked taxpayers to submit their tax appeal letters electronically through a specified email address, in additional to manual submission. KPMG in Kuwait understands that the electronic submission is intended to expedite the KTA’s administrative burden of typing tax appeals and responses.
To expedite the traceability of tax payments and internal recordkeeping, the KTA has asked taxpayers to include the following information in their tax payment instructions:
In another step toward complying with the Common Reporting Standard (CRS), on 5 May 2017, Kuwait became the 110th jurisdiction to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. This step enables Kuwait to fulfil its commitment to begin exchanging taxpayer information under the agreement by 2018.
The Ministry of Finance (MOF) recently released guidelines for implementing the requirements of international agreements for exchange of tax information, along with additional preliminary guidelines. Under the preliminary guidelines:
Kuwait financial institutions need to adapt their internal procedures and information technology systems so they will be ready to meet the requirements for reporting for exchange of information on financial accounts held directly or indirectly by non-Kuwait tax-residents.