Kuwait: Electronic Driving Licences for Expatriates Launched

Gulf News (United Arab Emirates), 11 December 2023: Kuwait’s Interior Minister has approved a Decision introducing electronic driving licences for expatriates in the country.

Under Kuwait Ministerial Decision No. 410/2023, the licences will be valid for one year and may be renewed.

It means physical driving licences will not be available to this group.

Expatriates will be able to renew their licences electronically via the Interior Ministry’s website or the Sahel application.

The Kuwait Mobile ID section in the application will activate the new licences.

Residents can check their licence status via this section as well. If the licence is valid, there will be a green tick. If the licence has expired, there will be a red mark instead.

The licences of domestic and international truck drivers are not affected by the new Decision.

Kuwait residents travelling abroad must use licences from their respective countries.

Also reported in Alrai on 10 December 2023. For the full story, click here.

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Kuwait: New Residency Law Finalised

Kuwait Times, 2 December 2023: The Kuwaiti government has announced it has finalised a new residency law. It will refer the law to the Interior and Defence Committees of the country’s National Assembly to consider. It is then expected to be approved by the National Assembly by the end of the year.

The law specifies the regulations for foreigners’ entry, deportation, iqama trade and penalties.

It also grants Kuwaiti women married to foreigners the right to sponsor their husbands and children, provided they haven’t obtained nationality under Article 8 of the new law., This provision relates to expatriate women naturalised by marrying Kuwaiti citizens. In addition, it authorises hotels and aparthotels to report the residence of foreigners.

A Ministerial Decision will determine fees for residency permits, renewals and all entry visas.

The law prohibits iqama trade through exploitation and imposes penalties of up to three years in jail and a fine of between 5,000 and 10,000 Dinars on violators. Only the country’s Public Prosecution will be able to issue residency trade pardons.

Domestic worker amendments mean domestic workers will be allowed to have regular residency permits for the duration of their contract period. If a domestic worker’s permit is cancelled when they leave the job, they must leave Kuwait within the specified timeframes unless a new residency is obtained.

To transfer the domestic worker’s permit, the employer must give their approval and the worker cannot stay outside Kuwait for more than four months without permission from the Interior Ministry.

The Interior Minister will be able to deport foreigners, even if they have residency permits, on public interest, general security, public morality or lack of a legal source of income grounds.

Deportation decisions may include dependents and the deportee can be jailed for up to 30 days. This can be extended if required.

The Interior Minister can exempt deported foreigners from fines after they have left Kuwait. Heads of state, members of the diplomatic corps and official employees are exempt from the law. Foreigners will be able to stay for up to three months. This can be extended for up to a year.

Foreigners can also stay in Kuwait for five years, while children of Kuwaiti women and real estate owners can stay for 10 years and investors may be granted residency permits for 15 years.

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Kuwait: Parliamentary Code of Conduct Proposal Being Discussed

Alrai Media, 27 November 2023: Kuwait’s Parliament is discussing a letter from MP Dr Jinan Bushehri, requesting a Parliamentary code of conduct be referred to the Council’s office for approval.

The letter includes a definition of the Code of Parliamentary Work.

The Code will be based on a set of standards, principles and guidelines that helps achieve transparency, improve the integrity of representatives and Parliamentary practice in a way befitting it and the process and integrity of democracy in Kuwait.

The Code aims to fortify the reputation of representatives and the Parliamentary institution as well as improve voter confidence in them.

It also aims to lay the foundations to make them good and influential role models in approving and activating codes of conduct in the country at executive and judicial authorities.

To read the full story, click here.

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Kuwait: Debt Restructuring Guidelines Apply to All Retired Borrowers

Alrai, 15 November 2023: Sources have confirmed the Central Bank has confirmed its debt restructuring guidelines apply to all retired borrowers.

This is the case even where they retired before 29 May 2023 and are listed with the Social Insurance General Organisation.

The Bank issued this clarification because there was an assumption banks can only offer debt restructuring to new pensioners.

To read the full story, click here.

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Kuwait: Sponsorship Change Conditions Explained

Kuwait Times, 13 November 2023: Kuwait’s Interior Ministry and Public Authority of Manpower have explained the conditions for changing sponsorship in the country.

Among other things, expatriates must meet the specified sponsorship transfer conditions under Kuwait Administrative Decision No. 842/2015.

If expatriates meet these conditions, they can transfer their residency and change sponsorship.

The expatriate’s residency in Kuwait should not be less than one consecutive year when transferring from family residency to work residency in the private sector.

The Administrative Decision states that workers brought in under a work permit can be transferred to work in the private sector one year after the date of the work permit being issued and approved by the existing employer for the sponsorship transfer.

Workers brought in with permits for employment in the private sector can be transferred to government contracts and projects after the government contract they were originally brought in for has been completed. The transfer to another government contract with the same employer or a government contract with a different employer is limited to highly skilled technical workers as defined by the government entity overseeing the project.

The Ministry and Authority emphasised employers have to cancel work permits of employees registered under the government contract that cannot be transferred for departure at the end of the contract.

Residency must not be transferred without the sponsor’s approval.

At least three years should have passed since the work permit was issued and the sponsor must be notified of the worker’s intention to transfer sponsorship within the specified duration in line with Kuwait Law No. 6/2010.

The worker’s notification to the sponsor must be verified and submitted to the labour department upon the transfer request.

Sponsorship transfer to another sponsor must meet the sponsorship conditions and all of the documents required for residency transfer without a sponsor’s approval must be submitted along with the payment of all associated fees.

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Kuwait: Corporate Tax Initiative to be Introduced

Arab News, 6 November 2023: The Kuwaiti government has announced it is going to launch a corporate tax initiative.

The plan is being introduced as the country looks to join the Organisation for Economic Co-operation and Development/G20’s Inclusive Framework on base erosion and profit shifting or BEPS.

BEPs refer to tax planning strategies used by multinational entities that exploit gaps and mismatches in tax rules to avoid paying tax.

They are the only GCC country yet to become a member of the Inclusive Framework.

They are going to introduce a Business Profits Tax Law as part of a complete overhaul of the existing tax framework in the country.

The Business Profits Tax Law will introduce a 15% tax on the profits of various operating entities including corporate entities, partnerships, and businesses with separate legal characteristics who have all been established and incorporated in Kuwait or operate in the country.

The plan will be completed by 1 January 2025 and will mean Kuwaiti multinational companies including government entities operating in overseas markets, with annual revenues exceeding 806 million Dollars will be taxed at 15%.

Individuals, micro and small enterprises will be exempt.

The Tax Law will be introduced as an amendment to the country’s existing tax laws in line with the Pillar Two framework being implemented globally.

Only foreign companies carrying out business or trade in Kuwait are taxed on their profits and capital gains income at the moment.

The country’s existing corporate income tax law imposes a tax on the income of any body corporate, wherever it is incorporated, which earns income from a Kuwait source.

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Kuwait: Child Allowance Approved for Working Women

Gulf News (United Arab Emirates), 27 October 2023: Kuwait’s government has approved a child allowance for working women in the private sector.

It has been introduced to support Kuwaiti women whose husbands are currently unable to contribute financially because they don’t have a regular income, pension or public assistance.

It has been approved following a proposal from the First Deputy Prime Minister and Interior Minister.

It has also been introduced to help Kuwaiti women who are balancing their professional roles in the private sector with family responsibilities.

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Kuwait: Guidelines for Vehicle Colour Changes Announced

Gulf News (United Arab Emirates), 20 October 2023: Kuwait’s Interior Ministry has announced new guidelines for changing the colours of vehicles in the country.

Under the changes, individuals wanting to change the colour of their vehicle must do three things. First of all, they have to visit the International Standards Division at the Technical Inspection Department. Doing this will enable them to obtain initial approval for the colour change. As part of this stage, they will have to sign a pledge, confirming their commitment to the chosen colour.

Vehicle owners will then be able to visit an authorised workshop which is proficient in the colour change process. This will mean the colour alteration is executed professionally, in line with the required standards.

Lastly, after the colour has been changed, a final inspection will have to be carried out at the International Standards Division of the Technical Inspection Department. The new vehicle colour will be verified and an updated car registration issued.

Workshops and garages have been warned not to alter vehicle colours without the approval of the Traffic Department. Offenders will be fined up to 500 Dinars by the Commerce and Industry Ministry.

The guidelines have been issued to help the country align with international standards and ensure documentation is done properly.

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