Kuwait has a relatively open economy with self-reported crude oil reserves of 102 billion barrels – about 9% of the worlds. Petroleum accounts for nearly half of the GDP and for 95% of export revenues and 95% of government income.
According to the Kuwaiti constitution, all natural resources in the country and associated revenues are government property.
The government passed, in May 2010, a privatization bill allowing them to sell assets to private investors. A further pledge in January passed an economic development plan to diversify the economy away from oil, attract more investment and boost private sector participation in the economy.
Other major industries include shipping, construction, cement and financial services.
International companies are increasingly looking at Kuwait as a place to pitch their services. When providing services in Kuwait they will either have to relocate their own staff or source international contractors. It is very difficult to start a company in Kuwait as a foreign owned enterprise and as such if these companies wish to relocate their staff or source international contractors they will require a locally based Contractor Management Company to provide a full employed local solution for their employees. This will entail Kuwait Permits and local Kuwait payroll.
As an individual, working in Kuwait can be a highly rewarding experience, an opportunity to experience living in the Middle East, high earning rates and paying zero income tax!
Our services in Kuwait include:
Self-Employed / Pty Ltd Companies
Expatriate Tax specialists
Insurance (Private Health / Travel / Professional Indemnity)
Bank Account Opening
You can reach all our resources for Kuwait from this page.
One of the most consistently challenging aspects of contracting in Kuwait is complying with the country’s tax system. Whether you’re a contractor or a permanent employee, you have to pay tax on all of your earnings whilst you’re in the country. As well as paying tax in Kuwait, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. Do you get double taxation in Kuwait? It will depend on your nationality and the nature of your assignment in Kuwait. Getting to grips with the basics of income tax in Kuwait and understanding your options helps you work out the best way to organise your affairs.
Paying Income Tax in Kuwait through Your Employer
If you’re working in Kuwait under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Kuwait for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Kuwait, but contractors may not be offered this service because of their short stay with each employer.
Working Out Income Tax in Kuwait Yourself
Anybody who can’t pay their tax in Kuwait through PAYE is left with the prospect of filing a tax return and doing everything themselves. Do you know much about Kuwaiti Tax Law? Does Kuwait have a tax treaty with your home country? You will need to find out or find someone who can help! Not only does this eat into your free time, it’s also exceptionally difficult to get the most out of the system. The rules change frequently, so if you’re new to it you may be working on out-dated research and end up paying too much. Income tax in Kuwait can be a burden, and you need to be sure you are placed in the correct tax brackets.
Using an Umbrella Company for Income Tax in Kuwait
Contractors in Kuwait are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Kuwaiti umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records). The companies are experts in Kuwait taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Kuwaiti tax office or tax department directly including processing your tax refund if you are eligible.
How We Can Help You with Tax in Kuwait
We work with numerous umbrella companies in Kuwait, many of whom are experts in tax and immigration laws. If you have any questions about tax in Kuwait, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We also have a comprehensive knowledge of the different services they provide, and we can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Kuwait work permit. Our advice is 100 percent free, and it comes with no obligations. You will be paying taxes in Kuwait but without the overhead of directly dealing with the Kuwaiti tax authorities. Get in touch with us today for some reliable advice on tax in Kuwait!
Immigration is one of the primary concerns for anybody hoping to start working in Kuwait. Permanent employees will find it easy to get their Kuwait work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer. The Kuwaiti work permit is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Kuwait is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.
What is a Kuwaiti Umbrella Company?
Umbrella companies in Kuwait “employ” contractors, but don’t make any decisions about your workload, clients or anything to do with your day to day operation. They simply process your payments by billing and collecting money from your clients, calculating your taxes and sending you a net wage. This is equivalent to the PAYE (pay as you earn) system employed by many companies, and it makes handling your tax in Kuwait a lot simpler. The fact that they technically become your employer helps you get your working visa in Kuwait with minimal fuss.
How Can Umbrella Companies Help You Get a Kuwait Work Permit?
As your permanent employer, umbrella companies are able to sponsor you for your Kuwait work permit provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Kuwait infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the Kuwaiti immigration authorities. They can even deal with the Kuwaiti Embassy directly.
Through their service you may be able to use a business visa to get started quickly and then transition to a work visa in Kuwait. It depends on your specific Kuwait visa requirements. Be aware you may have to register for a residence permit in Kuwait.
Can Umbrella Companies Also Assist You with Kuwait Taxation?
Some umbrella companies are specialists in the Kuwaiti tax system. They constantly stay up to date with the legislation and ensure that you get to keep the biggest proportion of your earnings possible. The PAYE system is ideal for most workers because you don’t have to complete any paperwork (aside from submitting your timesheets to the umbrella company) or worry about your taxes in any way (you’ll receive documentation for your records, though). You have a team of experts ensuring that you’re paid promptly and the various requirements for tax in Kuwait are met.
How We Help You with Contracting in Kuwait
We work closely with numerous umbrella companies in Kuwait and we have a thorough knowledge of the different services they provide – especially regarding immigration to Kuwait. If you’re a business analyst, IT project manager, software developer, tester, telecommunications contractor or an oil and gas worker, we can help you get sponsorship for your work permit and keep more of your earnings by setting you up with an umbrella company. We’ll also answer any questions you have about Kuwaiti visas or the country’s tax law, and we’ll contact the experts directly to guarantee 100 percent accurate advice. This all comes at no charge whatsoever to you and you’re not obligated to take on the services of any company. We’re just here to make your move as stress-free as possible.
- Shell International Trading & Shipping / Global DBA Operations Lead
Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter.
- Charles River Development / Vice-President, Finance
I utilized PEO services with Contractor Taxation & have found the services invaluable. We had to quickly establish a presence in China to meet a perceived large market, knowing how difficult it could be setting up a complete operation there. CT helped us immensely to navigate these waters and establish this beachhead without a lot of the normal distractions associated w/opening a full operation. This allowed us to focus on our client’s expectations and keep us moving forward in the market.