Beta Version

Website Last updated:

July 23, 2026

Article 7 of Kuwait's Income Tax Decree, as amended by Law No. 2 of 2008, outlines the regulations for carrying forward business losses. If a corporate body's accounts conclude with a loss in any year, this loss can be deducted from the profits of the subsequent year. Should profits be insufficient, the remaining loss balance can be carried forward for a maximum of three years following the loss-making year. This provision is nullified if the entity suspends business, defined as notifying the ministry or filing returns without revenue. Periods of compulsory business suspension are explicitly excluded from this three-year limitation.

Article 7

Should the account of any year is concluded with loss; such loss will be deducted from the profits of the next year. Should the profit is not sufficed to provide for such loss in full; the balance will be carried forward to the next year. However should any loss remains after this year, it will be carried forward to the third year. Anyhow the remaining loss may not be carried forward after the third year. Further the loss may not be carried forward in case of suspending business represented by advising the ministry thereof by the incorporated entity or they submit tax returns void of any revenues resulting from the main business of the entity.