Contribution to KFAS

KFAS was organized in 1976 by virtue of Amiri Decree promulgated on December 12, 1976 for the purposes of providing aid and assistance to science students and researchers for their education and training and for scientific research and development in general. Under Article 6 of the Memorandum of Association of KFAS, it is provided that a source of KFAS's funding shall be from the payment of all Kuwait Shareholding Companies (a "KSC") of five percent of such companies' net profits to KFAS.

While as a legal matter a KSC is not strictly speaking obligated to pay five percent of its net profits to KFAS (under Article 48 of the Kuwait Constitution, taxes may be levied only by a duly promulgated law), it has become the general and accepted practice in Kuwait for KSC's to make such payments to support KFAS's beneficial scientific activities. The failure of a KSC to make such payments may result in such KSC facing administrative difficulties in dealing with Kuwait government agencies and instrumentalities.