Parliamentarian Osama Al-Munawer has submitted a proposal according to each bank or financial institution concerned with banking operations and financial transfers take over the management of tax on transfers outside the State of Kuwait from foreigners and deposit in the State Treasury.
He said the Minister of Finance must issue a decision to fix the tax rate at no less than 5% of the value of remittance if it exceeds 50% of the annual income as per Law 9 of 2019 regulating the exchange of credit information and the entities that are licensed in accordance with its provisions, and they may undertake the tax administration.
The proposal also says that the provisions of this law do not apply to those whose salary is less than 350 dinars.
The explanatory note stated that the purpose of the law is financial and economic protection in the country in a way that parallels the efforts made by the state to provide full services to those who chose to reside and work in Kuwait since the country suffers in terms of demographics.
The law is consistent with the provisions of the constitution and complements previous legislation such as Decree No. 3 of 1955 regarding the Kuwaiti income tax, Law No. 32 of 1968 regarding cash and the central bank and the organization of the banking profession, and Law 9 of 2019 regulating the exchange of credit information.
The law also stipulates that every bank or financial institution concerned with banking operations and financial transfers shall undertake the management of the financial tax on transfers from non-citizens, and the collected taxes shall be deposited into the state treasury.