Define Legal Reporting Units and Tax Reporting Units for Kuwait

A legal reporting unit (LRU) is the lowest level component of a legal structure that requires registrations. It groups workers for the purpose of tax and social insurance reporting or to represent a part of your enterprise with a specific statutory or tax reporting

Creating Legal Reporting Units

To use a legal reporting unit for tax reporting purposes, you must also designate it as a tax reporting unit (TRU). The TRU holds the Employer's Legal Reporting Unit Registration Number. It is mapped to the Employer Registration Number on the TRU registration.

To create a legal reporting unit:

Click Navigator -> Setup and Maintenance.
On the Setup page, select the Workforce Deployment offering.
Select the Legal Structures functional area and then Define Legal Entities for Human Capital Management.
On the Select Scope page, select Manage Legal Reporting Unit.
In the Legal Reporting Unit field, select Create New.
Click Apply and Go to Task.

Note: An LRU with the same name as the previously created legal entity is created by default. This LRU is designated as the main legal reporting unit.
To create another LRU for this legal entity, click Create.
Enter the required information on Create Legal Reporting Unit page.
In the registration information, select the jurisdiction Kuwait Social Insurance. Enter the Legal Reporting Unit Registration Number.
Select the legal address.
Select No for Main Legal Reporting Unit.
Click Save and Close.

Designating the Legal Reporting Unit as Tax Reporting Unit

You must configure additional information for legal reporting units to designate them as tax reporting units.

To configure the TRU:

Select the Manage Legal Reporting Unit HCM Information task.
On the Legal Reporting Unit HCM Classification page, select the check box Tax Reporting Unit to designate the LRU as a TRU and Reporting Establishment.
Click Next.
Enter details for the reporting establishment.
Enter details for the TRU.
Click Save and Close.