This bill is the first step in changing Kuwait's image as a tax haven, as the government currently does not collect income taxes.

The new law would tax all earnings made in Kuwait at a rate of 10% including income, capital, industrial and commercial activities, real estate, salaries, wages, etc.

Those who earn less than 30,000 dinars per year would be exempt from the tax.

The average per capita income in Kuwait is 13,000 dinars, which means that the limits for tax exemption are more than twice the country's per capita income for a single man.

The law also takes family responsibilities and size into account when determining tax rates.

If implemented, the new income tax has the potential to profoundly change the relationship between the state and taxpayers, as the state is now seeking to diversify its sources of revenue.

For full story see: http://www.alarabiya.net/articles/2011/05/08/148248.html