EY seminar supports Kuwait’s businesses in navigating region’s evolving tax landscape

(MENAFN- Weber Shandwick) Kuwait City, Kuwait – 12 November 2024: EY has hosted its Kuwait Annual Corporate Tax Seminar 2024 in Kuwait City with the aim of guiding businesses in navigating the evolving tax landscape. The latest edition of the event provided an overview of the major developments in the tax landscape that have taken place in Kuwait and the wider region over the last eight months. It also reviewed expected changes that are likely to be introduced in the country’s tax laws and regulations.

The seminar saw the participation of around 220 C-suite executives and finance professionals from Kuwait-based local and international companies and various regulatory bodies. The event leveraged the knowledge and practical experience of EY’s senior tax professionals to provide comprehensive insights that will help the participants understand major changes which may have impact on their businesses.

The agenda covered various aspects of the taxes that are currently imposed in Kuwait and in the MENA region. Key topics included Base Erosion and Profit Shifting (BEPS) Pillar 2, practice changes related to corporate taxes, zakat and national labor support tax (NLST) laws. The sessions also explored the potential implications of upcoming changes to the tax environment, such as the introduction of the business profits tax. Currently in the draft stage and expected be released soon, the tax law will apply to all businesses operating in Kuwait, including companies and natural persons, with revenue exceeding the specified threshold.

Furthermore, the seminar examined regulatory updates and recent tax trends across the MENA region with a focus on the GCC that affect Kuwaiti businesses operating in other jurisdictions. These included the implementation of value-added tax (VAT) in other GCC countries, as well as the corporate income tax (CIT) in the United Arab Emirates (UAE), the qualified domestic minimum tax (QDMTT) in Bahrain and e-invoicing in the Kingdom of Saudi Arabia (KSA). In addition, the event covered the role of technology in the tax transformation journey and the hot topic of environmental, social and governance (ESG) aspects.

Ahmed Eldessouky, EY Kuwait, Qatar and Oman Tax Leader, says:

“Kuwait is proactively working to diversify government revenues, promote foreign direct investment, enhance ease of doing business and create more transparency in its tax regime. The country is also gearing up to implement a new business profits tax, which is a step in the right direction and the need of the hour considering the changes in the global tax landscape. In addition, Kuwait signed agreements to prevent double taxation with the UAE and Qatar. We look forward to supporting our esteemed clients on their journey to navigate and comply with the upcoming taxes in the country.”

Ahmed El Sayed, EY GCR Tax Leader, says:
“The planned introduction of the business profits tax in Kuwait is a game-changing move. Well-regulated and fair taxation can boost economic stability, making the country more attractive to investors from around the world. This can lead to a surge in foreign investment, stimulating economic growth. In addition, the increased revenue from taxes could help the nation diversify its economy, reducing its dependence on oil and financing sustainable projects. Finally, the implementation of taxes promotes transparency and accountability among companies, thereby creating a more responsible business environment.”

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