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Home International Customs Kuwait

Kuwaiti panel in favour of taxing expat money transfers

byCT Report
26/03/2018
in Kuwait
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KUWAIT CITY: The National Assembly’s financial and economic affairs committee yesterday appeared headed to approve proposals to impose taxes on money transfers by expatriates despite financial and constitutional objections. Head of the committee MP Salah Khorshid said the panel decided to postpone the voting on the issue until a future meeting, after members agree on one of the four proposals that have reached the panel.

Khorshid rejected claims that imposing taxes on expatriates’ remittances would tarnish Kuwait’s image abroad and may involve constitutional suspicions, as it discriminates between citizens and foreigners. Justifying a possible decision to tax expats, Khorshid said some Gulf states impose similar taxes on expatriates’ transfers, without naming any state. In fact, none of the five Gulf Cooperation Council (GCC) member states – Bahrain, Oman, Qatar, Saudi Arabia and United Arab Emirates – impose such taxes.

Khorshid said if the taxes are approved, the state coffers will be boosted by some KD 50 to 60 million. The Central Bank has strongly opposed plans to tax expatriate money transfers, saying it will be counterproductive and will boost black market dealings. The Assembly’s legal and legislative committee opposed the move on the grounds that it discriminates between citizens and expatriates.Khorshid said the proposals do not call for imposing any such taxes on Kuwaiti citizens. One of the proposals, which calls to impose a five-percent tax on any transfer by expatriates.

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