Kuwait issues 15% tax law for multinational entities

A decree-law was issued to implement the Tax Law on the Multinational Entities Group, imposing a 15% tax rate on entities operating in more than one country or jurisdiction. This law was approved by the Council of Ministers in its last meeting.

The law aims to reduce tax evasion and prevent the leakage of tax revenues to other countries, and it will be implemented in Kuwait starting from January 1, 2025.

The decree-law includes 5 articles as follows:

Article 1: Stipulates that the provisions of the attached law shall apply to the multinational entities group for tax periods beginning on or after January 1, 2025, and the provisions of current tax laws shall not apply to them.

Article 2: Grants the multinational entities group subject to the provisions of the attached law a period of 9 months from the date of the decree-law’s entry into force to apply for registration with the Tax Authority without imposing the administrative fine stipulated under Clause (1) of Article (34) of the law.

Article 3: Confirms the priority of applying the provisions of this law in the event of a conflict with any other law.

Article 4: Mandates the Minister of Finance to issue the executive regulations of the law within 6 months from the date of its publication in the Official Gazette.

Article 5: Indicates the commitment of the Prime Minister and the Ministers, each in his capacity, to implement the provisions of the law, and it shall be effective as of January 1, 2025.

The attached Multinational Entities Tax Law includes 41 articles divided into 8 chapters.

Source: Al Rai