Kuwait – Tax appeals and payments | KPMG | GLOBAL

Kuwait – Tax appeals and payments, exchange of tax information

Kuwait – Tax appeals and payments

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.

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Dual submission of tax appeal letters

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.

Information in payment instructions

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:

  • Company name 
  • Registration number 
  • Financial year(s)
  • Type of payment (e.g., payment for tax due per declaration or assessment, penalty).

Common Reporting Standard

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 are required to use the self-certification with clients under the guidelines of the self-certification form noted in the CRS manual.
  • Kuwait financial institutions must appoint an auditor from the list of audit firms list approved by MOF for applying the US Foreign Accounts Tax Compliance Act.
  • For the year ending 31 December 2017, Kuwait financial institutions must submit their first annual report to the MOF by 31 May 2018. The reports must include:
    • Approval of the classification of foreign financial institutions
    • Approval of reporting procedures 
    • Issuance of an annual certificate (if required) of the financial institution’s compliance with requirements of CRS and the validity of the processes and procedures applied.

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.

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