Kuwait Introduces a New Tax on Multinational Entities (MNEs), Reinforcing Its Commitment to the OECD Framework
Date
12/31/2024 12:36:00 AM
(MENAFN- Mofpresscenter) Kuwait – December 30, 2024: As part of Kuwait's Vision 2035 to establish a diversified and financially sustainable economy, H.E. Minister of Finance and Minister of State for Economic Affairs and Investment, Eng. Noora Sulaiman Al-Fassam, announced the introduction of a new tax targeting multinational entities (MNEs). Implemented under Decree No. (157) of 2024, this measure introduces a supplementary domestic minimum tax (DMTT) for multinational corporations operating across multiple countries or jurisdictions. The tax is designed to comply with the OECD’s Pillar II framework.
The new tax ensures that multinational entities pay a minimum of 15% on taxable income earned in Kuwait, with the law taking effect on January 1, 2025. This initiative underscores Kuwait’s commitment to economic reforms and financial sustainability.
Commenting on the legislation, H.E. Minister of Finance and Minister of State for Economic Affairs and Investments Eng. Noora Sulaiman Al-Fassam stated:
“The implementation of Kuwait’s new tax law reaffirms our nation’s commitment to fostering economic growth and ensuring financial sustainability. It reflects our dedication to creating a transparent and equitable framework for international taxation while diversifying income streams and decreasing dependency on oil revenues.
Kuwait's economy is entering a transformative phase of diversification and competitiveness, supported by legislative reforms aimed at improving the business environment, attracting investments, and generating employment opportunities.”
The Ministry of Finance will engage with all companies affected by the new tax, preparing to host educational workshops and targeted meetings according to a planned timeline. Additionally, the Ministry is working on issuing executive bylaws for the law in the near future to outline the implementation mechanism for the next phase.
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