Kuwait, 22 April, 2025 : The Ministry of Finance has issued a stern warning to companies delaying their income tax payments, urging immediate settlement to avoid fines. As per Article 8 of the Income Tax Decree, a penalty of 1% is applied for every 30 days—or part thereof—of delay.
In recent notices to defaulting firms, the ministry emphasized that companies have 60 days from receiving a tax assessment to file objections, according to Article 24 of the Executive Regulations. Beyond this period, objections will not be accepted.
The ministry highlighted a case where a company failed to maintain proper accounting records, prompting authorities to disregard its reported financials and estimate taxable profit at 30% of revenues, as permitted under Article 19 of the Executive Regulations.
Authorities may use estimated assessments when firms miss deadlines, fail to provide adequate documentation, or submit inaccurate data. The ministry reiterated that non-compliance can lead to higher tax liabilities and urged companies to meet their tax obligations promptly.
Source : www.zawya.com
