Kuwait: Finance ministry warns companies over delayed income tax payments
KUWAIT CITY - The Ministry of Finance has issued a firm reminder to companies delaying their income tax payments, urging them to expedite settlement to avoid fines, reports Al-Jarida daily.
Citing Article Eight of the Income Tax Decree, the ministry reiterated that late payments are subject to a penalty of one percent for every 30 days—or part thereof–of delay.
In a recent communication sent to a defaulting company, the ministry highlighted the consequences of failing to comply with tax regulations. It also cited Article 24 of the Executive Regulations, stating that companies have a maximum of 60 days from the date of receiving a tax assessment letter to file objections. After this period, objections will not be considered.
The ministry explained that upon reviewing the company's tax return, it was determined that the company failed to maintain proper accounting books and records as required by the provisions of Income Tax Decree No. 3/1955, its amendment Law No. 2/2008, and Article 15 of the Executive Regulations. As a result, the ministry opted not to acknowledge the reported financial results of the company and instead estimated its taxable profit at 30 percent of its revenues.
Based on Article 19 of the Executive Regulations, the Tax Administration is authorized to assess taxes on an estimated basis in cases where determining the actual net income is not feasible.
These scenarios include failure to submit the tax return or its attachments, missed deadlines, or the absence of required records and documentation after two formal warnings. The same applies if a taxpayer refuses to provide requested information or submits inaccurate or misleading documentation.
The ministry stressed that adherence to tax obligations is critical, warning that non-compliance not only results in fines but also subjects companies to estimated assessments,w hich may significantly increase their tax liabilities.
Arab Times | © Copyright 2024, All Rights Reserved Provided by SyndiGate Media Inc. (Syndigate.info).
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