Kuwait implements new tax information exchange law
Date
7/15/2024 8:20:20 AM
(MENAFN) The Kuwaiti Council of Ministers has enacted a decree mandating all entities and individuals within the country to provide necessary information to comply with local laws, executive regulations, and international agreements pertaining to the exchange of information for tax purposes. This decree marks a significant step towards aligning Kuwait's tax practices with international standards, facilitating cooperation with other jurisdictions on tax-related matters.
According to reports from Kuwaiti newspaper Al-Qabas, the new law empowers the competent authority to request or collect information from relevant parties within Kuwait within 21 days of a request. This information will then be exchanged with other countries under established international agreements aimed at combating tax evasion and ensuring transparency in financial transactions.
The competent authority, under the provisions of this law, is authorized to engage in information exchanges with countries that Kuwait has bilateral or multilateral agreements with for tax purposes. This includes the ability to gather data held by individuals or entities in Kuwait and transmit it in response to legitimate requests made under these agreements.
Furthermore, the law enables automatic exchange of information by the competent authority with relevant countries, streamlining the process without the need for specific prior requests. This mechanism enhances Kuwait's adherence to international standards for tax transparency and reinforces its commitment to combatting illicit financial activities.
Financial institutions in Kuwait are mandated by this law to annually collect and report required information to the competent authority. These reports must comply with stringent due diligence requirements outlined in the law and its implementing regulations. Financial institutions are also required to submit a declaration of no information if there are no reportable transactions or activities for the relevant fiscal year.
The implementation of this law underscores Kuwait's proactive approach in fostering global cooperation on tax matters while strengthening its regulatory framework to ensure financial integrity and compliance with international norms.
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