On 2 April 223, the Kuwait Ministry of Finance published Ministerial Resolution No. 24 of 2023 in the Official Gazette introducing a new tax inspection process. At present, the Ministry of Finance has subjected each tax declaration filed by a taxpayer to a thorough tax inspection. However, with the introduction of the Resolution, the Ministry may now apply random sampling basis tax assessments to mitigate the accumulation of un-assessed tax years. The Resolution comes into effect from 2 April 2023, the date of its publication in the Official Gazette.
The Resolution outlines the following four methods, from which the tax inspections may be carried out:
- Comprehensive tax inspection.
- Targeted tax inspections with specific returns.
- Tax inspection of returns filed based on deemed profit.
- Acceptance of tax return filed.
