The multinational tax is intended to help diversify the Kuwaiti government’s revenue streams and reduce dependence on oil income.
Kuwait is expected to generate annual revenues of nearly KD250 million ($819 million) through the 15% tax imposed on multinational companies operating across multiple jurisdictions.
Although the domestic minimum top-up tax (DMTT) came into effect on January 1, 2025, the Ministry of Finance issued a decree recently unveiling the executive regulations for the law, report says.
The regulation clarifies the law’s provisions, outlines its implementation procedures, and promotes transparency in line with global standards.
Finance Minister Nora Al-Fusam said the tax will help diversify the state’s revenue streams and reduce dependence on oil income.
The DMTT will apply to multinational enterprises with consolidated global revenues of €750 million ($793 million) or more in at least two of the four financial years immediately preceding the financial year in which the tax applies.
The Gulf is increasingly looking to tax revenues to diversify its government sources of income. Last month Oman’s Sultan approved a revised personal income tax law, making key amendments and lowering the threshold level.
In November 2024, the UAE’s finance ministry said it will increase corporate tax on large multinational enterprises to 15% from January 1 from the current 9% of their profits in the Emirates.
Bahrain said in September that it would also introduce DMTT from January 1 next year on large multinationals.
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