Finance Committee approves taxing Expat remittances

KUWAIT CITY, April 01: Parliament’s Financial and Economic Committee voted in favour to impose taxes on the remittances of expatriates.

Article 1 of the proposal suggests imposing tax on the remittances of expatriates to any country with any currency except for money transfers relevant to treaties for protection of investment and transition of capital as well as official financial transfers.

Article 2 of the proposal classified the tax into three kinds. The first kind is two percent tax for remittances less than KD 100. The second kind is four percent tax for remittances ranging between KD 100 and KD 499. The third kind is five percent tax for remittances above KD 500.

Article 3 obligates all money exchange companies and banks to send details related to money transfers to Ministry of Finance for audit and accounting purposes.

Article 4 states that the violator of this law can receive a punishment of six-month imprisonment and/or a fine of KD 10,000.

Article 5 stipulates that the Cabinet will issue the executive decree based on that of minister of finance within six months of approval of the law.

Article 6 states that every law that contradicts this law will be cancelled.

Article 7 states that the Prime Minister and ministers will implement the law as soon as it is published by the official gazette.

Source: Arab Times

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