According to recent reports, Kuwait’s Department of Inspections and Tax Claims has modified its interpretation of a permanent establishment (PE) to include a virtual service PE. The concept is similar to a virtual service PE approach recently adopted in Saudi Arabia ({News-2015-07-31/A/3- previous coverage}).
The virtual service PE concept applies for services provided under contract to a Kuwaiti entity when in connection with that entity's activities in Kuwait. In such cases, the duration o…