Kuwait, 30 September, 2024 : On 29 September 2024, the Kuwait Ministry of Finance issued the executive regulations for Decree No. 6 of 2024 concerning the exchange of information for tax purposes. These regulations clarify the obligations of financial institutions in Kuwait and outline procedures for implementing the Decree and the exchange of tax information upon request. The Decree becomes effective from 30 September 2024.
Failure to comply with FATCA, CRS requirements, or to respond to information requests can result in financial and administrative penalties. For more details, refer to our earlier alert on the Law published on 14 July 2024.
The Decree aims to enhance Kuwait’s implementation of the Automatic Exchange of Financial Account Information (AEOI) Standard, including the Common Reporting Standard (CRS). Although CRS was introduced in Kuwait in 2017, enforcement has been limited.
Key Highlights of the Law:
- The Ministry of Finance (MOF) can request any information from individuals or entities in response to foreign tax authority requests, with a 21-day deadline for providing the information.
- Client confidentiality does not override this obligation. The Law takes precedence over other local laws.
- Financial and administrative penalties are in place for non-compliance by reporting financial institutions and for failure to provide requested information.
- Financial institutions must retain records for at least six years and adhere to CRS obligations, including collecting self-certifications and conducting due diligence.
The executive regulations are expected to be issued by 14 January 2025.
Source : www.bdo.com.kw
