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Kuwait
EY Street address: (Al Aiban, Al Osaimi & Partners) Baitak Tower Mail address: 18th—20th Floors P.O. Box 74 Safat Ahmed Al Jaber Street 13001 Safat Safat
Kuwait Kuwait
Executive contacts
Xavier Delaunay
+971 (56) 406-1072 (resident in Dubai,
Email: xavier.delaunay@ae.ey.com United Arab Emirates) Nitesh Jain
Amit Arora
Immigration contact
Xavier Brun
+965 2295-5080
Email: nitesh.jain@kw.ey.com
+965 2295-5142
Email: amit.arora@kw.ey.com
+973 3356-7192 (resident in Manama, Bahrain)
Email: xavier.brun@bh.ey.com
A. Income tax
No income taxes are currently imposed on individuals in Kuwait. Tax residency. All Kuwaiti nationals are considered as tax resident in Kuwait.
It is possible to apply for a Tax Residency Certificate in Kuwait confirming the tax residency of the individual for the purposes of a double tax treaty signed with Kuwait.
B. Other taxes
Net worth, estate and gift taxes are not imposed on individuals in Kuwait.
C. Social security
For Kuwaiti employees, contributions are payable monthly by both the employer and employee under the Social Security Law. The employer’s social security contribution is 11.5%, up to a salary ceiling of KWD2,750 per month. Consequently, the maximum employer contribution is KWD316.25 per month. The employee social security contribution rate is 10.5%. For calculation purposes, the cap amounts vary. For 2.5%, the cap amount is KWD1,500 and for 8%, the cap amount is KWD2,750. Consequently, the maximum employee’s contribution is KWD257.50.
Benefits provided, which are generous, include pensions on retirement and allowances for disability, sickness and death.
For employees who are nationals of other Gulf Cooperation Council (GCC) member countries, contributions are payable monthly by both the employer and the employee at varying rates, which are applied to the employee’s monthly salary.
End-of-service benefits. End-of-service benefits for expatriate employees are described below.
Employees who are paid on a daily, weekly, hourly or piecework basis are entitled to 10 days’ remuneration for the first five years of service and 15 days’ remuneration for each year thereafter.
Employees who are paid on a monthly basis are entitled to 15 days’ remuneration for each of the first five years of service and one month remuneration for every year thereafter. However, for employees whose work contract has an indefinite term, in case of resignation, they are entitled to half of the end-of-service benefits for a period of service not less than three years and not more than five years. If the period of service is more than five years but not more than 10 years, the employee is entitled to two-thirds of the benefit. For a period of service above 10 years, the employee is entitled to the entire end-of-service benefit. In case of a termination, the employee receives the end-of-service benefits even if the service period is less than three years.
Some employers choose not to follow the above rule of providing half or two-thirds of the entitlement and instead pay in full.
Health insurance scheme. A health insurance scheme applies for all expatriate residents of Kuwait. The annual premium is payable at the time of initial application or renewal of the expatriate’s residence permit. The premium is KWD50 for expatriates working in Kuwait, from KWD30 for their children, KWD40 for the spouse and KWD50 for children who are more than 18 years old. No social security obligations apply to expatriates. However, expatriate employees are entitled to end-of-service benefits, which are described above.
D. Double tax treaties
Kuwait has concluded tax treaties with the following jurisdictions.
Albania Indonesia Serbia
Algeria Iran Serbia and
Armenia Ireland Montenegro
Austria Italy Slovak Republic
Azerbaijan Japan Slovenia
Belarus Jordan South Africa
Belgium Korea (South) Spain
Brunei Darussalam Kyrgyzstan Sri Lanka
Bulgaria Latvia Sudan
Canada Lebanon Switzerland
China Mainland Lithuania Syria
Croatia Mexico Thailand
Cyprus Moldova Tunisia
Czech Republic Morocco Türkiye
Denmark Netherlands Ukraine
Ethiopia
North Macedonia
United Kingdom
France Pakistan Uzbekistan
Georgia Philippines Venezuela
Germany Poland Vietnam
Hong Kong SAR Portugal Yemen
Hungary
Romania Zimbabwe
India Russian Federation
Post-arrival steps for work permit in Kuwait. The following are the post-arrival steps for work permit in Kuwait:
• Present original passport, attested degree certificate and PCC, e-visa, medical test results and biometrics upon entry at Kuwaiti airport
• Complete the biometric fingerprint scan at the airport or an MOI office
• Undergo a medical test in Kuwait
• Submit application to the PAM, including attested degree, lease agreement and two original photographs of the applicant
• After the work permit is issued, pay the applicant’s governmental health insurance on the Ministry of Health website
G. Residence permits
Upon arrival in Kuwait, employees who have obtained their work permits must apply for a residence permit through the General Department of Residency Affairs. The process is typically completed within one month, following the biometrics and medical examination.
Duration and renewal. Residence permits can be issued for up to three years at a time. Employers can request renewals for additional periods of up to three years.
Government medical insurance is mandatory for all private sector employees and workers.
Civil ID requirement. All residents, including Kuwaiti citizens, must obtain and carry a Civil ID.
The Civil ID is issued by the Public Authority for Civil Information (PACI) once a residence permit is granted.
The “My Kuwait Mobile ID” app allows residents to access their Civil ID information via mobile devices.
Travel and resident status. Foreign nationals with resident status can travel freely in and out of Kuwait, provided they do not stay outside the country for more than six consecutive months. Resident status is revoked if the individual stays outside Kuwait for longer than six months.
H. Family and personal considerations
Expatriates holding residence permits in Kuwait can sponsor visit or dependent visas for their spouse and dependent children, as well as visit visas for certain other family members.
Restrictions. Women generally cannot sponsor their husband and children, with exceptions for specific professions such as teachers and doctors.
Family visit visa. The family visit visa is issued for a one-month period and after arrival can be extended for a stay of up to three months for the spouse and children.
For parents, the visa is also valid for one month, with the condition that the parent is under 60 years of age. Special approval is required for parents over 60 years of age.
Required documents for a family visit visa application include the following:
• Marriage certificate
• Father or husband Civil ID and Kuwait work permit copy
• Family member passport copy
• Birth certificates for children
• MOI family visit visa application
To secure a family visit visa in Kuwait, the father should submit the application together with the necessary documents at the MOI. The visa is generally issued within two to three working days.
Dependent visa. The dependent visa can be issued for up to one year or more, based on the husband’s residence permit, and is renewable. It is only available for a spouse and children.
The employee must have a minimum monthly salary of KWD800 (may vary) for private-sector employees.
Required documents for a dependent visa. The following are the required documents for a dependent visa:
• An attested marriage certificate from the Ministry of Foreign Affairs (MOFA) and the Kuwait embassy in the country of origin or residency
• A copy of the father’s/husband’s Civil ID and work permit
• A copy of the passport for each family member
• Birth certificates for children, attested by the MOFA and the Kuwait embassy
• A completed family visa (residency) application from the MOI
• The vaccination booklet/card for dependents
Application process. The following is the application process:
• The visa application should be submitted at the MOI with two to three working days for processing.
• The spouse must complete medical tests and obtain a PCC. These documents need to be attested at the Kuwaiti embassy.
• Once medical test results, the PCC and pre-approved visa are ready, the family visits the Kuwait embassy to have the visas and passports stamped.
• Upon arrival in Kuwait, the spouse must complete biometrics at MOI and undergo a medical test. Children will only need medical tests.
• After receiving the medical results (10 to 12 working days), the sponsoring applicant can pay for health insurance and apply for the residency permit at MOI, which is issued on the same day.
• The last step is to apply for the Civil ID, which takes about seven to 10 working days to be processed.
Civil ID requirements. The following are the Civil ID requirements:
• Results of a blood type test
• Copies of the passport
• Personal photos with a blue background, size 4x6 cm
• A copy of the father’s Civil ID
• A copy of the residence permit
Individuals on a dependent visa are not permitted to seek employment until they have been under family sponsorship for one year or after six months with special considerations.
The duration of the family accompany visa (residency) is either one or two years, depending on the validity of the sponsor’s
(father’s) passport and the company license of the sponsoring entity.
Education. Education is compulsory for children six to 14 years of age. The free government schools are for Kuwaiti nationals, nationals of Somalia and Yemen, and the children of the foreign nationals’ teachers who are working in the Ministry of Education; however, a wide range of private schools is available. These come under the inspection program of the Ministry of Education, but are otherwise self-governing. Private education is relatively expensive, with normal fees ranging from KWD700 per year at the kindergar10 level to KWD5,000 per year for high school. British, American, French and other curricula are available.
Children on dependent visas may study in any of the private schools. Admission to Kuwait University is restricted to Kuwaitis, dependent children of Kuwait University professors and members of diplomatic missions in Kuwait. For other expatriate residents, special permission is required from the Minister of Education for admission to Kuwait University. Such permission is given in rare cases. A quota of 10 to 15 students is being given to each embassy in Kuwait.
Driver’s permits. Holders of foreign driver’s licenses, except for driver’s licenses issued by GCC countries and the other countries mentioned below, may not drive in Kuwait. Holders of visitors’ visas may drive with international driver’s licenses, which should be endorsed at the Traffic Department after local third-party liability insurance is obtained.
Kuwait has driver’s license reciprocity with the other GCC countries. However, visitors from most European Union (EU) countries, Australia, Canada, Japan, Korea (South) and the United States require an international driver’s license to drive in Kuwait. Holders of resident visas must obtain Kuwait driver’s licenses if they plan to drive in the country. Unless specific criteria are met, most applicants must apply for learner’s permits and then take driving tests. In these instances, unless a person has a driver’s work visa, driver’s licenses are restricted to certain categories of professionals, including medical professionals, engineers and accountants.
To obtain a learner’s permit, an applicant must have his or her eyesight tested at one of the government hospitals. Copies of the person’s home country driver’s license and a certificate of salary and qualification are required. These documents must be translated into Arabic and, only if the visa designation identification is DRIVER, must be attested to by the embassy in the expatriate’s home country and by the MOI in Kuwait.
After a learner’s permit is obtained, a computer examination is administered at the Traffic Department. A practical driving test is then given. Private driving schools are available to help prepare for these tests. The whole process of obtaining a driver’s license usually takes one to two months.
To obtain a driver’s license, the conditions mentioned below need to be fulfilled. Exceptions to these conditions exist in some cases