Finance Proposed Apple Enter Kuwait Market Via Kdipa To Avoid Taxation

The Ministry of Finance proposed to Apple to enter Kuwait through the Kuwait Direct Investment Promotion Authority (KDIPA), to ensure its inclusion in the list of tax-exempt foreign companies for enjoying double taxation agreements, Al-Rai daily reported.

This step makes Apple’s presence in Kuwait via Apple Pay for financial payment and is not subjected to tax for 10 years.

The sources told the daily that Apple’s postponement of its entry into the Kuwait market through its Apple Pay service for financial payment, indicating that the ministry held more than one meeting with company representatives to explain its tax situation in case it contracts with local banks to implement the Apple Pay service.

The Apple Pay service was invented as a payment technology available for iOS systems only, it is present in the iPhone and Apple Watch, and it collects payment card details for the customer’s purchases of different nature, to make him able to use the phone as a direct tool for payment.

The sources pointed out that the company initially asked the ministry of Finance for a tax exemption from the 5% deduction from the total returns of Apple Pay in Kuwait, on the basis that the application of its service with Kuwaiti banks, and should not be classified among the investments that must be paid taxes, as the company presented a vision for the work of its service, which states that it provides a financial payment service through its applications, and not through its presence in Kuwait, which exempts it from any taxes due locally.

 

SOURCE : TIMES KUWAIT

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