Kuwait Rules Out Income Tax for Individuals, Focuses on Economic Growth and Diversification

Kuwait, 24 January, 2025 :  Kuwait’s Finance Minister, Noura Al-Fassam, announced that no income tax will be imposed on individuals for now, despite ongoing discussions with Gulf Cooperation Council (GCC) countries. Speaking at the World Economic Forum in Davos, she highlighted the government's efforts toward economic diversification, projecting a 2.6% growth for 2025.

Al-Fassam emphasized initiatives to improve economic performance, including increased capital expenditure and financial reforms. She also outlined plans for a 15% corporate tax on earnings, exempting small and medium enterprises (SMEs) and vital sectors to promote growth.

Kuwait aims to increase non-oil revenues to 10%, attract investments in renewable energy, infrastructure, and tourism, and bolster foreign investment, with over 5 billion Kuwaiti dinars already attracted through the Kuwait Direct Investment Promotion Authority (KDIPA).

Al-Fassam confirmed the government's commitment to legislative reforms and public-private partnerships to accelerate sustainable development and improve Kuwait’s business environment. The Public-Private Partnership Authority (PPPA) is set to launch several projects soon to support the country’s growth trajectory.