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 Zakat and Other Taxes for Local Companies

 

In practice, no income tax is levied on Kuwaiti and Gulf Cooperation Council (GCC) owned and incorporated companies operating in Kuwait. However, depending on the nature of the entity, a Kuwaiti or GCC entity with operations in Kuwait may be subject to local taxes such as Zakat, National Labor Support Tax (NLST), or a levy in the form of a contribution to the Kuwait Foundation for the Advancement of Science (KFAS). You use this report to create the declarations for these local taxes.

Prerequisites

You have made settings in the following Customizing activities:

  • You have defined the financial statement version used for this report in Customizing for Start of the navigation path Financial Accounting (New) End of the navigation path, under Start of the navigation path General Ledger Accounting (New) Next navigation step Master Data Next navigation step G/L Accounts Next navigation step Define Financial Statements Version End of the navigation path

  • You have defined the form structure used for this report in Customizing for Start of the navigation path Financial Accounting (New) End of the navigation path, under Start of the navigation path General Ledger Accounting (New) Next navigation step Periodic Processing Next navigation step Report Next navigation step Statutory Reporting: Kuwait Next navigation step Financial Statements Next navigation step Define Form Structure for Local Taxes End of the navigation path.

  • You have specified the Kuwait Stock Exchange information for your company in Customizing for Start of the navigation path Financial Accounting (New) End of the navigation path, under Start of the navigation path Financial Accounting Global Settings(New) Next navigation step Global Parameters for Company Code Next navigation step Enter Global Parameters End of the navigation path. Specify the following information:

    • Enlistment Date

    • Entry Number in Stock Exchange

  • You have assigned the relevant PDF form to this report in Customizing for Start of the navigation path Financial Accounting (New) End of the navigation path, under Start of the navigation path General Ledger Accounting (New) Next navigation step Periodic Processing Next navigation step Report Next navigation step Statutory Reporting: Kuwait Next navigation step Assign PDF Forms to Reports End of the navigation path

Features

On the selection screen, you enter the selection parameters for which the report should be run and make the specific report selections that determine the content of the output. Through the External Figures pushbutton at the top of the selection screen you make manual entries for values that are not drawn from the specified financial statements.

In External Figures you select the line number configured for manual entry and input the year, period, amount, and currency. For example:

Line Number

Year

Period

Line Description

Amount

Currency

120

2013

1

Profit from Local Operations

11,000.00

KWD

Note Note

If you select a form version that is not assigned to this report in the Customizing activity Assign PDF Forms to Reports then the results will be incorrect.

End of the note.

Output

Select the Output Type as ALV Display to view the results of the report before you print or generate a PDF. In Other Parameters for Output, you use the Form Version to determine the language of the PDF output.

Activities

To access this report on the SAP Easy Access screen, choose Start of the navigation path Accounting Next navigation step Financial Accounting Next navigation step General Ledger Next navigation step Information System Next navigation step General Ledger Reports (New) Next navigation step Financial Statement / Cash Flow Next navigation step Kuwait Next navigation step Zakat and Other Taxes for Local Companies End of the navigation path, or transaction KW_TAXLOCL.