The Integrated Tax System (ITAS), which the Ministry of Finance wants to introduce has been the interesting topic at the moment since the ministry is now required to take a final decision on the company that will undertake this important task in the ministry’s tax sector before next July 8.
A local Arabic daily said the tax sector in the Ministry of Finance endeavors to introduce the Integrated Tax Management System (ITAS), comes within the framework of the continuous development processes of the sector, while these systems were specifically identified as helping the Ministry in managing the current tax laws, and any other laws that may be introduced in the future.
In this regard, the daily has learned, through its sources, that the Ministry of Finance has received a single financial offer regarding the practice of supplying, installing and operating the Integrated Tax Management System (ITAS), and that the bid submitted in connection with this practice came at a cost that may reach about 5.5 million dinars.
And that the Ministry of Finance has a period that extends until mid-July to study the bid, make appropriate recommendations and take the appropriate decision in this regard.
The tax administration in the Ministry of Finance began ambitious projects years ago to develop its business, which included providing advisory services for the development of tax administration and the selection of a suitable company to provide the integrated tax management system and related services, as well as providing project management, change management and quality assurance services during the development of the Integrated tax administration system in the ministry.
Through these advisory services, the ministry aims to study the current status of taxation procedures, evaluate the current organizational structure, prepare a report based on the current and future situation and provide the necessary recommendations and prepare a future vision for the taxation model, develop the engineering structure for information systems, design future work procedures, and develop the structure including preparing the job description, preparing the request for proposals to select a suitable system and supplier for the development of the integrated tax management system and related electronic services.
This is in addition to providing consultation services to undertake project management throughout its period, and providing change management services throughout the project period.
In the same context, informed sources stated that a discussion was opened in the Ministry of Finance regarding the second pillar related to the global minimum tax rate of 15%, which will constitute lost opportunities on the state’s general budget if the tax difference is collected outside Kuwait.
The sources indicated in this regard the Ministry of Finance has begun to seek the opinions of specialized bodies in this regard in order to know what procedures are required from the ministry in the future, especially since the agreement related to the minimum tax was signed by about 140 countries around the world, while Kuwait has not signed it so far.
The sources pointed out that this particular file needs to be addressed quickly, as all Kuwaiti companies that operate outside Kuwait and meet the minimum aggregate revenue of about 240 million dinars, will become subject to this tax, which is considered a lost public revenue for the state.
In a related context, the competencies that the Minister of Finance Abdulwahab Al-Rasheed is working on to attract Kuwaiti elements to assume their duties included the position of a specialist to draw up tax policies to keep pace with international changes, in order to fulfill the international obligations related to the implementation of the MLI Agreement (multilateral international agreement) with the Organization for Economic Cooperation and Development, to implement modern standards to prevent harmful tax planning, double taxation, and implement measures related to tax agreements to prevent base erosion and the artificial shifting of profits.
The tax administration development project is expected to be completed in 2024, as the project works to develop tax in Kuwait in accordance with the latest international practices by bringing in an integrated tax management system with electronic services related to it to cover the current tax laws that will be used in the future.
The Ministry of Finance said that the project to develop the tax administration is linked to the ease of doing business and the indicators of paying taxes.
The performance indicators for the project focus on the percentage of applying the organizational structure, the percentage of applying new procedures, the percentage of applying the new automated and temporary system, the percentage of tax compliance, the level of human capacity development, and the level of application of awareness programs. and communication.