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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Kuwait: Students Should be Allowed to Work

Alrai, 15 October 2023: Kuwait’s Acting Prime Minister and Interior Minister has asked the Education Minister and Higher Education and Scientific Research Minister to allow students in further and higher education to work while they are studying.

The Public Authority for Manpower has supported the request. They added the move will help the labour market develop.

Read the full story here.

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Kuwait: Electronic Real Estate Brokerage System Launched

Alrai, 8 October 2023: The Undersecretary of the Trade and Industry Ministry Ziad Alnajem has announced the launch and activation of the first stage of a new Electronic Real Estate Broker system in Kuwait.

The system is intended to help prevent fraudulent real estate sales. It will help link up five relevant government departments – the Trade and Industry Ministry, the General Authority for Civil Information, the Justice Ministry, the Kuwait Municipality, and the fire brigade, as well as the purchaser and seller. It will also see the end of paper-based transactions in the local property market.

Read the full story here.

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Kuwait: Cost of Living Allowance Could be Increased

Alqabas, 1 October 2023: A Kuwaiti government source has announced the government is studying a cost of living allowance increase. They are considering increasing it from 120 to 250 Dinars.

The source added the government will work to stabilise prices first and then approve any financial increases. They went on to say the government implements a joint mechanism for up to 90 days to control any high prices affecting consumer goods and products in cooperative associations, retail stores and parallel markets.

Read the full story here.

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Kuwait: New Controls for Granting Leave for Accompanying Sick Patients Announced

Alrai, 17 September 2023: The Managing Director of Human Resources at Kuwait Petroleum Corporation has issued a Circular regarding the rules, controls and conditions for leave to accompany a patient in the oil sector.

The Circular states it is permissible to extend the leave of a non-relative to accompany a patient suffering from an incurable disease after the accumulated annual leave balance of the employee has been exhausted.

The extension request will have to be made after the first 90 days of leave for a patient’s non-relative companion has expired. A report from the relevant medical authority will have to be provided and presented to the institution’s CEO to consider and approve.

It will be implemented on its issued date.

Read the full story here.

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