The Kuwaiti government implemented Decree-Law No. 6 of 2024 to enhance tax transparency and compliance with international tax agreements on 14 July, 2024. This legislation introduces measures to ensure rigorous information exchange and adherence to global standards.

Key provisions

Mandatory information exchange:
All entities and individuals in Kuwait are required to provide the competent authority with necessary information as mandated by the law, its executive regulations, and international tax agreements. This includes both automatic information exchange and responses to requests from the Ministry of Finance within 21 days.

Scope of information requests:
The competent authority is empowered to request and collect information from any person or entity within Kuwait’s jurisdiction, in line with international tax information exchange agreements.

Financial institutions reporting:
Financial institutions must annually collect and report required information to the competent authority by 31 May of the following year. They are also obligated to ensure the accuracy of the reported information through audits conducted by approved auditors.

Compliance and procedures:
Reporting financial institutions must establish internal procedures, appoint compliance officers, and adhere to due diligence requirements, including obtaining valid self-certification forms from customers when opening accounts.

Retention of documents:
Financial institutions are required to retain documents related to non-reportable accounts for at least six years after the end of the year in which due diligence procedures were applied.

Penalties for non-compliance:
The decree-law imposes fines ranging from 10,000 to 20,000 Kuwaiti dinars on individuals and financial institutions for non-compliance, failure to submit information accurately and timely, or violating due diligence procedures.