Kuwait
Last reviewed: 21 August 2026 · Primary sources: Ministry of Finance, PAM and PIFSS
Country facts at a glance
- Currency: KWD — linked to an undisclosed currency basket, roughly 0.306 per USD
- VAT: Not yet in force; repeatedly deferred
- Corporate tax: 15% business profits tax
- Personal income tax: None
- End of service: 15 days’ pay per year for years 1–5, then a full month; on gross pay, capped at 18 months
- Resignation treatment: Nil below 3 years, half at 3–5, two thirds at 5–10, full at 10 years or more
- Social insurance: Kuwaiti nationals only — 7.5% employee, 11% employer (PIFSS)
- Minimum wage: No general private-sector minimum; KWD 75 for domestic workers
- Working week: 48 hours
- Notice period: Three months for monthly-paid employees
Current decision alerts
- Kuwait uses gross pay, not basic pay, as the gratuity base — settlements are usually larger than expatriates expect, but Article 53 tiering can cut them sharply on resignation.
- A 15% business profits tax now applies more broadly than the historic foreign-ownership regime; confirm how your structure is treated.
Practical country guidance
Banking & Money
Opening a Kuwait bank account
Civil ID, salary certificate and the documents banks request.
Wage Protection System
How salaries are monitored and what a late run triggers.
Remittances from Kuwait
Corridor pricing and the true cost behind an advertised rate.
Tax & Compliance
Business profits tax registration
Scope, filing obligations and the assessment process.
Preparing for VAT
What the framework agreement would require if implementation is confirmed.
Zakat and contribution levies
The separate charges applied to Kuwaiti shareholding companies.
Visas & Residency
Kuwait family visit visa
Conditions, documentation and application checks.
Residence permit (Article 18) basics
Sponsorship, renewal and transfer between employers.
Civil ID issue and renewal
Sequence, fees and the penalties for late renewal.
Business & Employment
Company formation and foreign ownership
Structures available and the licensing sequence.
Indemnity and final settlement
How Article 53 tiering changes the payout on resignation.
Kuwaitisation quotas
Sector targets and their effect on hiring plans.
Useful calculators
End-of-Service Gratuity
Corporate Tax Comparison
Remittance Cost
Currency Converter
Loan EMI
Official portals
Sahel
Unified government services app
Government of Kuwait
PAM
Work permits, labour files and WPS
Public Authority for Manpower
PIFSS
Social security registration and contributions
Public Institution for Social Security
Ministry of Finance
Tax registration and filing
Ministry of Finance
Frequently asked questions
Is gratuity in Kuwait based on basic or gross salary?
Gross pay, which makes Kuwait unusual in the region. The UAE, Qatar, Oman and Bahrain all use basic salary only.
What happens to my indemnity if I resign after four years?
You receive half the calculated entitlement. Below three years a resignation forfeits it entirely under Article 53.
Does Kuwait have VAT?
No. Implementation has been deferred several times and no date has been confirmed, though Kuwait remains party to the unified GCC framework.
Is there a minimum wage?
There is no general private-sector minimum. A KWD 75 floor applies to domestic workers, and market rates for skilled expatriate roles sit far above it.
How long is my notice period?
Three months for monthly-paid employees unless the contract sets a longer period.
How this page is maintained
General information only. Confirm current rules with the relevant authority.