KUWAIT CITY, July 14: The Council of Ministers has issued Decree-Law No. 6 of 2024 concerning the exchange of information for tax purposes, which introduces significant provisions aimed at enhancing transparency and compliance with international tax agreements, reports Al-Seyassah daily. The following are the key points of the decree-law:

Information Exchange – All entities and individuals in Kuwait are mandated to provide the competent authority with necessary information as per the law, its executive regulations, and international tax agreements. This includes both automatic information exchange and responding to requests from the Ministry of Finance within 21 days.

Scope of Information Request – The competent authority can request and collect information from any person or entity within Kuwait’s territory, as required under international tax information exchange agreements.

Financial Institutions Reporting – Financial institutions must annually collect and report required information to the competent authority by May 31 of the following year. They are required to ensure the accuracy of reported information through auditing by approved auditors.

Compliance and Procedures – Reporting financial institutions must establish internal procedures, appoint compliance officers, and adhere to due diligence requirements, including obtaining valid self-certification forms from customers when opening accounts.

Retention of Documents – Financial institutions must retain documents related to non-reportable accounts for at least six years, following the end of the year in which due diligence procedures were applied.

Penalties – The decree-law imposes fines ranging from 10,000 to 20,000 Kuwaiti dinars on individuals and financial institutions for non-compliance, failure to submit information accurately and timely, or violating due diligence procedures. This legislation aims to align Kuwait’s tax practices with international standards, facilitating the exchange of tax information while ensuring compliance and transparency in financial transactions