Friday, October 16, 2015

Tax man coming for the Kuwaiti Money

KUWAIT CITY, Oct 15, (Agencies): With the application of Foreign Accounts Tax Compliance Act (FATCA) in Kuwait, 6,500 Kuwaitis with American citizenship will have to pay annual tax worth a total of $20 million to the US Treasury.

A minimum tax of $ 2,800 is expected from the 200 Kuwaitis who gave up their American citizenship earlier this year, reports Al-Shahed daily quoting informed sources. They explained that Kuwaitis with American citizenship and annual incomes above $99,200 will have to pay 28-35 percent of their incomes as taxes.

These taxes are on their liquid assets and not on their real estate or other assets. Kuwaitis with US citizenship and incomes more than $ 200,000 a year will have to pay 28 percent of their incomes as tax.

The new FATCA law will also be subjected to the 63,000 American expatriates working in Kuwait. According to sources, the US Treasury will receive a total of $1.82 billion as tax from the Kuwaiti- Americans and the American expatriates in Kuwait.

Meanwhile, the National Assembly’s Foreign Affairs Committee on Monday recommended the approval of the Foreign Account Tax Compliance Act (FATCA) agreement between Kuwait and the US.

----Giving up US citizenship, back to applying for visas to travel there or paying an annual fee which sucks both ways unless you are a broke one who earns less than the $99,200 allowed income.

2 comments :

  1. Are you really going to give up your American citizenship to escape this tax ?

    ReplyDelete
  2. Dual citizenship is illegal in Kuwait. If that law were to be enforced, those who have been proved to have American citizenships would've had their Kuwaiti citizenship stripped away from them.

    ReplyDelete

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