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The Investor 23

sub-indicators, in order to attract more become a reality in Kuwait? What will be
productive foreign investment. the effect of VAT on investment in Kuwait
and on Kuwait’s economy as a whole? Is
We also seek to take advantage of Kuwait’s the VAT different from the sales tax that will
geographic location, as it forms a natural be imposed? Does the government plan to
link between sea trade routes from Asia impose income tax or new forms of taxes
and land routes heading to Europe. Kuwait in the short and medium terms (2-5 years)?
is the first state that signed the cooperation
treaty with China, to activate the old Silk AL-SALEH: The secretariat general of the
Road. Moreover, Kuwait finalized a study to GCC received two ratification documents
transform the country’s islands into financial from UAE on the selective tax unification
and trade hubs, to serve implementing the treaty and the VAT unification treaty in GCC
Kuwait vision 2035. countries. The UAE is the second country that
deposited the two ratification documents at
the GCC secretariat general. Based on the
texts of both treaties that consider these two
Kuwait and VAT taxes in effect since depositing the document
of the ratification at the secretariat general,
THE INVESTOR: There are plans being both taxes - the selective and VAT - are in
prepared to impose value added tax in effect. It remains for each country to choose
GCC countries in 2018 - what is your the mechanism and time to impose both
view of this issue? Do you think VAT will taxes. January 1, 2018 was previously set

October 2017 Issue 1