With the application of Foreign Accounts Tax Compliance Act (FATCA) in Kuwait, 6,500 Kuwaitis with American citizenship will have to pay annual tax worth a total of $20 million to the US Treasury.
A minimum tax of $ 2,800 is expected from the 200 Kuwaitis who gave up their American citizenship earlier this year, reports Al-Shahed daily quoting informed sources. They explained that Kuwaitis with American citizenship and annual incomes above $99,200 will have to pay 28-35 percent of their incomes as taxes.
These taxes are on their liquid assets and not on their real estate or other assets. Kuwaitis with US citizenship and incomes more than $ 200,000 a year will have to pay 28 percent of their incomes as tax.
The new FATCA law will also be subjected to the 63,000 American expatriates working in Kuwait. According to sources, the US Treasury will receive a total of $1.82 billion as tax from the Kuwaiti- Americans and the American expatriates in Kuwait.
Meanwhile, the National Assembly’s Foreign Affairs Committee on Monday recommended the approval of the Foreign Account Tax Compliance Act (FATCA) agreement between Kuwait and the US.
The committee also recommended joining the Co-operative Agreement for Arab States in Asia for Research, Development and Training related to Nuclear Science and Technology (ARASIA), the head of the committee, Hamad Al- Hershani said in a statement following a committee session. They also advised the endorsement of the agreement between Kuwait and Egypt on double taxation avoidance and income tax evasion prevention.
Source: Arab Times