Cash withdrawals remain predominant in Kuwait despite a push towards digital payments
Despite significant increases in digital payment methods, cash withdrawals from ATMs continue to represent a considerable share of overall financial transactions.
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The total financial payment withdrawals in Kuwait during 2023 reached approximately 45.795 billion dinars, showing an 8.5% increase from the previous year. Even with a slight decline in ATM withdrawals, these still made up roughly 23.5% of all transactions, totaling 10.722 billion dinars.
The volume of transactions at point-of-sale terminals reached 17.519 billion dinars, and online payments experienced a notable surge to 17.553 billion dinars. The Kuwaiti government has implemented measures to minimize cash usage, including prohibiting cash transactions for real estate and pharmacy purchases exceeding 10 dinars, as part of efforts to combat money laundering.
However, the continued reliance on cash can be attributed to factors such as increased household expenditures due to inflation and a significant segment of the workforce being unbanked.
The black market also significantly influences the high rate of cash withdrawals, especially for money transfers and illegal activities such as drug trafficking. Despite regulations aimed at preventing money laundering, a preference for cash transactions exists among some individuals to elude monitoring.
Kuwait stands out for its financial digitalization within the Gulf region, yet reducing cash transactions poses a challenge. With digital payments projected to hit $11.95 trillion globally by 2025, the trend indicates a move away from cash worldwide. Although countries like Sweden have made strides in diminishing cash usage, Kuwait faces ongoing challenges in shifting away from cash transactions, underscoring the necessity for enhanced measures to foster the adoption of electronic payments.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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Compliance with these deadlines is crucial to avoid administrative penalties.
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The UAE’s Federal Tax Authority (FTA) is urging Corporate Taxpayers to adhere to submission deadlines to avoid fines. Specifically, Resident Juridical Persons with licenses issued in May (regardless of the year) must submit their Corporate Tax registration applications by July 31, 2024, in line with Federal Tax Authority Decision No. 3 of 2024.
This decision aligns with the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, effective from March 1, 2024. The FTA stresses the importance of meeting these registration deadlines, which have been communicated through various media channels and direct outreach to registered company owners in the UAE.
Utilizing the EmaraTax Platform
Compliance with these deadlines is crucial to avoid administrative penalties. The deadlines apply to both juridical and natural persons, including Resident and Non-Resident Persons in the UAE. Detailed information on these deadlines and other relevant issuances can be found on the FTA’s official website.
According to the FTA’s Public Clarification, Resident Juridical Persons established or recognized before March 1, 2024, must submit their tax registration applications based on the month their license was issued. Those with expired licenses as of March 1, 2024, should submit their applications based on the original issuance month. For those holding multiple licenses, the earliest issuance date applies.
Administrative penalties for corporate tax violations have been in effect since August 1, 2023. To facilitate the registration process, taxpayers must use the “EmaraTax” digital platform, available 24/7, or seek assistance from accredited tax agents and government service centers.
The FTA has also emphasized the importance of providing accurate information and submitting updated supporting documents correctly with the electronic registration application, noting that registering for Corporate Tax for a juridical person requires uploading various documents, including the commercial license, the Emirates ID card, the passport of the authorized signatory, and proof of authorization for the authorized signatory.
A comprehensive video explaining the registration process through the “EmaraTax” platform is available on the FTA’s website. This platform, designed according to international best practices, aims to streamline the registration journey, submission of periodic returns, and payment of due taxes for all UAE taxpayers.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
