Article 1 of Law No. 2 of 2008 imposes an annual income tax on any body corporate, regardless of its place of incorporation, that conducts trade or business within the State of Kuwait. The tax is levied at a fixed rate of 15% on net taxable income. Taxable activities are broadly defined to include profits from contracts executed in Kuwait, commissions, industrial and commercial operations, asset disposals, property transactions, intellectual property licensing, and service provision. The article also establishes a significant exemption, stating that profits an incorporated entity realises from trading on the Kuwait Stock Exchange are exempt.