Tax retention for consulting services in Kuwait

[glass99]

I am writing a proposal for a project in Kuwait and I believe there is a 5% tax retainage that my client will have to subtract from our invoices. Apparently you can get your 5% back if you get a letter from the Kuwait government (aka the "DIT"), but I don't know how that works exactly. Does anyone have experience with this? I need to know whether to include the 5%.

 

[LittleInch]

Looks like you need local tax people and registering as an entity.

Might be best to price in leaving it behind....

https://s3.amazonaws.com/rgi-documents/ccf30459f0f61674174b487ab399e35e96931f64.pdf

and

https://www.deloitte.com/content/da...tax/me_tax_doing-business-guide-kuwait-v2.pdf

Remember - More details = better answers
Also: If you get a response it's polite to respond to it.

 

[glass99]

@LittleInch: yes I think they make it hard to get your 5% back. Registering as an entity etc would probably mean 10's or hundreds of hours of admin slog.

 

[LittleInch]

More importantly its the cost of the local tax advisors.

Far better to be subcontract to a local company who's registered there already.

You'll always find some relative of the people you're working for who can arrange this, for a fee....

But how much work for how long? A one off or many years?


Remember - More details = better answers
Also: If you get a response it's polite to respond to it.