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Kuwait: Guidance on requirements under tax law on disposal/destruction of fixed assets

Taxpayers must notify the tax authority of any disposal/destruction of fixed assets no less than 30 days prior.

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October 15, 2024

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

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