Kuwait's parliament adopted a law on Wednesday slashing corporate tax rates for foreign firms to 15 percent from 55 percent in an attempt to attract more investment from abroad.
The initiative, which has been under discussion for several years, will come into effect once it is approved by the emir, Sheikh Sabah al-Ahmad al-Sabah, AFP reported. Kuwait struggles to lure foreign investment, with inflows of about US$300 million in 2006, compared with US$18.7 billion for the United Arab Emirates, Kuwaiti Finance Minister Mustafa al-Shamali told parliament.
The law, which will apply to foreign firms operating in the emirate as well as to Kuwaiti companies which represent foreign firms exclusively, is one of a series of measures to boost foreign investment and invigorate the local economy.
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