Governments in the Middle East and North Africa are experimenting with new taxation methods in a bid to ratchet up their assets and maintain economic stability, an international tax expert said on Monday. Speaking at a lecture entitled, “New Taxation Developments in Kuwait,”
Tax Advisory Service agent at Ernst & Young (EY) Alok Chugh said that a new law of government-imposed corporate taxes is in the works, adding that he expected the law to be refereed to parliament within months.
Companies will be given a heads-up prior to implementation of the law, he noted. Member of EY’s Kuwait Bureau Waleed Abdulfadheel said that the government seeks to implement corporate and value-added taxes as part of impending economic reforms.
Moreover, Director of Union Investment Companies (UIC) Fadwa Darwish described the lecture as a preparatory measure that would assist the financial market in dealing with a looming Cabinet approved law that would impose a 10% corporate tax, in addition to a 5% value-added tax. In her speech, Darwish also elaborated on the latest developments of taxation laws in the country.