Article 33 - Covered Taxes

Covered taxes mean the following:

1. Taxes included in the financial accounts of a CE related to income, profits, or shares of income or profits of any other CE in which it holds an Ownership Interest.

2. Taxes imposed in lieu of corporate income tax, including withholding taxes on interest, rents, and royalties.

3. Taxes imposed on retained earnings and corporate equity, including taxes imposed on the basis of income and equity that are not considered Top-Up Tax.

Excluded from covered taxes are the following amounts:

1. Tax payable by the Parent Entity under the Qualified Income Inclusion Rule (Qualified IIR);

2. Tax payable by the CE under a Qualified Domestic Minimum Top-Up Tax in a state or jurisdiction;

3. Taxes attributed to adjustments made by a CE as a result of applying the Qualified Under-Taxed Payments Rule (Qualified UTPR);

4. Taxes imposed on the MNE Group according to the DMTT Law;

5. A Disqualified Refundable Imputation Tax;

6. Taxes paid by an insurance company in respect of returns to policyholders;

7. Contributions paid to any Entity that is not part of the General Government under the GloBE rules, as well as controls and conditions set by the Tax Administration in the executive rules and instructions.

8. Amounts imposed under the following laws:

   1. Decree No. (3) of 1955 regarding Kuwaiti Income Tax and its amended laws;

   2. Kuwaiti Income Tax Law in the (designated area) No. (23) of 1961;

   3. Law No. (19) of 2000 regarding the support and encouragement of national employment in Non-Governmental Entities, as amended by Law No. (32) of 2003;

   4. Law No. (46) of 2006 regarding Zakat and the contribution of public and closed joint-stock companies to the State budget.

The following expenses are also considered as Excluded Covered Taxes;