Kuwait has no personal income tax for anyone—expats and citizens keep 100% of salary. Kuwaiti nationals only contribute to PIFSS (Public Institution for Social Security, sometimes written KPSS): according to secondary sources, 8% of monthly salary up to KWD 2,750 plus an additional 2.5% up to KWD 1,500, with employers adding a reported 11.5%. Expats pay nothing to PIFSS. 2.5% Zakat applies to publicly listed Kuwaiti shareholding companies—not individuals directly. No VAT—Kuwait has delayed GCC VAT implementation indefinitely. 15% corporate tax applies only to foreign corporate entities. No capital gains or inheritance tax. Kuwait's KD is the world's highest-valued currency. End-of-service gratuity for expats: 15-30 days salary per year worked. Use our calculator to compare Kuwait with taxable countries.
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools.Learn more about our affiliate partnerships
★ 4.7Trustpilot · 8,728 reviews
Need to hire in Kuwait or pay international contractors? Deel handles payroll compliance in 150+ countries. Trusted by 40,000+ companies.
⚠For employers and companies only — not for individual freelancers or employees.
Hiring in Kuwait? Deel Handles Compliance →★ 4.2Trustpilot · 3,259 reviews
International health insurance built for digital nomads. Coverage in 185+ countries. From $62.72 per 4 weeks. 4.2★ / 3,259 Trustpilot reviews.
âš Not a replacement for comprehensive private health insurance in high-cost countries.
Get International Health Insurance →Interested in reaching this audience? Advertise on CountryTaxCalc →
No personal income tax applies in Kuwait—zero for both Kuwaiti citizens and expats on all income types: salary, investments, rental income, and capital gains. Kuwait's oil wealth (94% of government revenue) eliminates the need for income tax. This has been consistent since Kuwait's founding and shows no sign of changing.
KPSS (Kuwait Public Institution for Social Security) provides retirement, disability, and death benefits for Kuwaiti citizens only. According to secondary sources, Kuwaiti employees contribute 8% of monthly salary up to KWD 2,750 plus an additional 2.5% up to KWD 1,500, and employers add a reported 11.5%. Expats do not participate in KPSS—no contributions and no benefits. This makes expat employment effectively tax-free.
Kuwait signed the GCC VAT Framework in 2016 but has repeatedly delayed implementation. Despite plans to introduce 5% VAT, political opposition and surplus oil revenues have postponed it indefinitely. As of 2026, Kuwait remains the only GCC country without VAT. This could change if oil revenues decline significantly.
Kuwait law mandates end-of-service gratuity (indemnity) for expats: 15 days salary per year for first 5 years, then 30 days per year thereafter. Based on final salary. No cap. Must complete at least 3 years to receive full entitlement. This can amount to substantial sums for long-term employees—essentially forced savings.
Foreign companies (non-GCC) operating in Kuwait pay 15% flat corporate income tax on Kuwait-source profits. GCC-owned companies are exempt. Zakat (2.5%) applies to Kuwaiti shareholding companies' profits distributed to shareholders. No withholding tax on dividends or interest to non-residents. Tax treaties available with many countries.
Effective rates, what the headline hides, 111+ countries. Every two weeks, free.
Bi-weekly. No spam. Unsubscribe in one click.
Last Updated: October 2026