Kuwait’s Fiscal Year: Exceeding Oil Revenue Expectations
The closure of Kuwait’s 2023/2024 fiscal year marked a significant achievement, with oil revenues surpassing expectations.
2 min
According to the Al-Shall weekly report, the state’s budgeted expenditures were around 26.32 billion dinars, with total revenues estimated at 19.46 billion dinars. Oil and gas revenues were a major contributor, accounting for approximately 88.2% of total revenues, or about 17.16 billion dinars. The report underscored the delay typically seen in final account actual results, emphasizing their critical importance for fiscal assessment.
Oil Revenue Performance and Market Dynamics
The average price for a barrel of Kuwaiti oil in March 2024 was noted at $84.4, significantly over the budgeted forecast of $70 per barrel by $14.4 or 20.6%. This average price, however, fell by 13.1% compared to the previous fiscal year’s average of $97.1 per barrel.
The reduction in production, as per the “OPEC+” agreements, saw Kuwait’s oil output stabilizing at 2.41 million barrels per day from January 1, 2024, about 9.8% less than budgeted figures.
Al-Shall projected Kuwait‘s oil revenues for the fiscal year to be around 21.28 billion dinars, surpassing budget estimates by approximately 24%, leading to total expected revenues nearing 23.58 billion dinars. This projection, however, indicated a potential deficit against the expenditure allocations, highlighting the need for fiscal adjustment.
Banking Sector Growth
The Kuwaiti banking sector witnessed considerable growth in net profits for the year 2023, achieving approximately 1.53 billion dinars, a 30.4% increase from 2022. This growth occurred despite a downturn in profits during the fourth quarter compared to the same period in 2022.
The report detailed that traditional banks constituted 54.2% of the total net profits, with Islamic banks contributing the remaining 45.8%. Significant profitability improvements were observed, including enhancements in return on total assets and equity.
The banking sector’s price-to-earnings ratio also saw a decrease, further illustrating the sector’s robust performance. Notably, Kuwait Finance House and the National Bank of Kuwait were prominent contributors to the sector’s profits.
Principles Behind Oil Revenue Estimations
Al-Shall’s methodology for estimating oil revenues was based on several key principles: a daily crude oil production share of 2.67 million barrels, a benchmark price of $70 per barrel, and an approved exchange rate of 304 fils to the dollar. Additionally, gas revenues and production costs were meticulously calculated, providing a comprehensive financial overview for the fiscal year.
Commercial Bank of Kuwait’s Performance Metrics
The Commercial Bank of Kuwait showcased remarkable progress in its financial indicators for the year ending December 31, 2023. Notable increases were seen in return on average assets, equity, and capital, alongside a significant rise in earnings per share and an improved price-to-earnings ratio.
These advancements reflect the bank’s enhanced profitability and value proposition to shareholders, underpinning a successful fiscal year for Kuwait’s banking sector and the economy at large.
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
Compliance with these deadlines is crucial to avoid administrative penalties.
2 min
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
