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May 15, 2026

Ministerial Decision No. 29 of 2008 establishes the Executive Bylaws for an income tax decree applicable to Incorporated Bodies in the State of Kuwait. This Decision, which covers Articles 1 to 48 of the Executive Bylaws, provides detailed regulations on tax administration and compliance. As illustrated in Article 6, it defines taxable income by specifying costs that cannot be deducted, including personal expenses, disciplinary penalties, and certain provisions. The Decision grants the Tax Administration authority to review, approve, or amend any expenses it deems overstated, ensuring that only necessary business costs are claimed.

Chapter 1 : Income Tax

Second : Taxable Income

Article 6

The expenses and costs incurred by the Incorporated Bodies that are not related to the taxable business in the State of Kuwait or that are not necessary for generating profit shall not be deducted including but not limited to the following :

Personal and private expenses
Disciplinary penalties
Indemnified losses
Provisions and reserves of whatever type except for some reserves of banks and insurance companies as stipulated in the Executive Rules and Regulations of the Decree.

The Tax Administration may request the revision of any expenses it deems overstated and the submission of supporting documents justifying such expenses. It may approve or amend or disapprove such expenses.