Kuwait Administrative Decision No. 875/2013 The Issuance of the Executive Rules and Instructions of Kuwait Income Tax Decree, Kuwait Decree No. 3/1955 Amended by Kuwait Law No. 2/2008, is a set of tax obligations introduced to help enforce tax compliance and the collection of taxes in Kuwait. It requires the paying entity to retain 5% from each payment or total contract value, until the payee (vendor) provides a valid tax retention release letter issued by the Ministry of Finance (MOF). The MOF issues retention release letters once it is satisfied that the taxpayer has met their Kuwait tax compliance obligations or is exempt from tax.

• GCC: Gulf Corporation Council.

• Payor: The paying entity.

• MOF: Ministry of Finance.