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Thursday, December 3 - 2009

Deloitte: Kuwait new tax law to promote foreign investment

More than 30 vice presidents and financial controllers of multinational, regional and Kuwaiti companies gathered in Dubai in October for a Deloitte seminar on recent changes to the Kuwait Tax Decree.

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The event included an overview of Kuwait taxation in light of law no. 2 of 2008 and its associated bylaw, as well as a comparison with Kuwait tax decree no. 3 of 1995 and the current practices of Kuwait's tax authorities.

Deloitte Kuwait Tax Principal, Ihab Abbas, who facilitated the seminar, said:

"The main purpose of the amendments is to promote foreign investment in Kuwait. The foreign investment law grants several advantages including tax exemption for up to 10 years. Foreign companies working under the old law were concerned that they faced a tax rate of up to 55% and in many instances this represented a real barrier to inward investment. Decreasing the tax rates to a 15% flat tax rate encourages foreign companies to reconsider their strategy regarding their operations in Kuwait".


Abbas added: "Another main driver for the amendments is to correct former deficiencies and ambiguities and also to protect the interests of Kuwaiti distributors and traders."

Commenting on the selection of Dubai as a venue for the "Kuwait Tax Seminar", Nauman Ahmed, the ME regional leader for tax services, explained that the new law amendments target international companies operating in Kuwait, many of which have their regional ME head offices located in the Emirate.
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About Deloitte:
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in over 140 countries. With access to the deep intellectual capital of approximately 165,000 people worldwide, Deloitte delivers services in four professional areas—audit, tax, consulting, and financial advisory services—and serves more than 80 percent of the world's largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global growth companies. Services are not provided by the Deloitte Touche Tohmatsu Verein, and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas.

About Deloitte & Touche (M.E.):
Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu (DTT) and is the longest established professional services firm with uninterrupted presence for over 80 years in the Middle East region. Deloitte & Touche (M.E.) is among the region's leading professional services firms, providing audit, tax, consulting, and financial advisory services through 25 offices in 14 countries with over 1,700 partners, directors and staff.

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