Are you planning to open a company in Kuwait and need accounting services? Our local specialists can provide you with in-depth services, including accounting. This article offers you a clear picture of the key accounting rules for companies in Kuwait. You may get in touch with our team right from the start of your business to ensure you benefit from complete and tailored services in Kuwait.
Table of Contents
What types of accounting services do you provide in Kuwait?
- Payroll,
- Bookkeeping,
- Audits,
- Preparation of annual financial statements,
- HR administration,
- Debt monitoring,
- Tax returns, etc.
What is the applicable accounting legislation in Kuwait?
- Accounting Standards under the Ministerial resolution No. 110/1991,
- International Financial Reporting Standards (IFRS),
- International Standards on Auditing (ISA).
NOTE!Kuwait Commercial Companies Law (Law No. 1 of 2016) is the primary governing accounting law.
Who regulates accounting in Kuwait?
- Ministry of Commerce and Industry (MOCI),
- Ministry of Finance (MOF),
- Central Bank of Kuwait.
Do you provide the services of a Certified Public Accountant (CPA) in Kuwait? What are his/her responsibilities?
A CPA in Kuwait deals with:
- performs statutory external audits,
- ensures corporate compliance,
- analyzes the financial health of companies in Kuwait,
- verifies all financial records in a firm,
- validates IFRS compliance, etc.
What does bookkeeping entail?
- tracking and registering all daily financial transactions in the firm,
- keeping a general ledger,
- recording & verifying daily financial data entry.
What does payroll entail?
- calculating payroll taxes,
- paying salary taxes to the relevant institutions,
- distributing salaries to the company’s employees,
- keeping payroll records through various platforms,
- periodical payroll reporting, etc.
What are the payroll taxes in Kuwait?
- 10.5% employee contribution to the Social Security in Kuwait,
- 11.5% employer contribution to the Social Security in Kuwait.
NOTE! There are no social security contributions or payroll tax deductions for expat employees in Kuwait.
What types of audits are available in Kuwait?
- internal and external audits,
- tax audits,
- forensic audits,
- Internal Control Report Assurance for companies listed on the stock exchange, and many more.
Do you assist in preparing & submitting the annual financial statements for companies in Kuwait?
Absolutely. We can prepare:
- Balance sheet,
- Cash flow statements,
- Reports & notes,
- Income statement, etc.
Can your Kuwaiti accountants deal with company payments?
Yes, according to the daily business tasks and requests.
What tax optimization strategies are available in Kuwait?
- incentives for foreign ownership,
- Tax Retention Release,
- office and travel expense deductions,
- charities,
- retirement plans, etc.
Can I benefit from tax advice from our Kuwaiti accountant?
Absolutely! Our tax advisors are at your service with complete advice in terms of taxation if you own a firm in Kuwait.
Can I ask for accounting services for more than just one company in Kuwait?
Yes, if you have a large business portfolio.
What are the costs for accounting services in Kuwait?
The costs for accounting services in Kuwait depend on the type of company, size, number of employees, activities, and other relevant information. Our Kuwaiti accountants will provide details once you get in touch with them.
What is the financial year in Kuwait?
- January 1 to December 31 in the private sector,
- April 1 to March 31 in the public sector.
Are there any precautions to consider in the accounting field in Kuwait?
- Make sure you understand the Tax Retention Rule in Kuwait,
- Pay the taxes on time to avoid penalties,
- Align with the recent Ministerial Decision No. 32 in terms of the elimination of cash transactions, etc.
Besides accounting services for companies in Kuwait, if you are facing issues regarding acquiring residency here, our lawyers can assist you. Please get in touch with our law firm in Kuwait and get the services you need, at affordable prices and tailored to your business needs.