Ending your tax residency status in Kuwait is a significant legal process that requires careful attention to detail. Follow these steps to ensure compliance with local regulations and to properly cease your tax residency status.
Notify the Kuwait Tax Authority
The first step in ceasing your tax residency status is to formally notify the Kuwait Tax Authority (KTA) of your intent to cease residency. This notification should include your full name, tax identification number, and a statement declaring your intent to cease being a tax resident of Kuwait. Ensure that this notification is submitted in writing and retain a copy for your records.
Settle Outstanding Tax Liabilities
Before you can cease your tax residency, you must settle any outstanding tax liabilities with the KTA. This includes paying any pending taxes, fines, or penalties. Obtain a clearance certificate from the KTA confirming that all your tax liabilities have been settled.
Cancel Local Registrations
You must cancel any local registrations with the Ministry of Commerce and Industry, including business licenses and commercial registrations, if applicable. Provide proof of these cancellations to the KTA as part of your cessation process.
Close Kuwaiti Bank Accounts
Close any bank accounts you hold in Kuwait. Inform the KTA of the closure and provide relevant documentation to demonstrate that you no longer hold financial assets in Kuwait.
Relinquish Residency Permit
If you hold a Kuwaiti residency permit, formally relinquish it by notifying the General Department of Residency. Submit a copy of the relinquishment confirmation to the KTA.
File Final Tax Return
File a final tax return with the KTA, covering the period up to the date you cease your tax residency. Ensure that all income earned while you were a tax resident is reported accurately.
Legal References
- Kuwait Income Tax Decree No. 3 of 1955
- Ministerial Order No. 29 of 2014
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