Taxpayers must notify the tax authority of any disposal/destruction of fixed assets no less than 30 days prior.
The Kuwait Tax Authority (KTA) issued guidance reiterating the requirements under the tax law on the disposal/destruction of fixed assets.
In particular, taxpayers must notify the KTA of any disposal/destruction of fixed assets no less than 30 days before such disposal/destruction. In addition, taxpayers must arrange for inspectors to physically observe the disposal/destruction.
Failure to comply with the requirements can lead to the disallowance of the loss on disposal/destruction of fixed assets or potential imputation of capital gain subject to tax at a 15% rate.
Read an October 2024 report prepared by the KPMG member firm in Kuwait