Serious discussions are currently underway to avoid the possibility of imposing taxes on Kuwaiti multinational companies for foreign markets, suggesting that Kuwait will impose taxes on companies of up to 15 percent.
The sources told Al-Rai that the concerned authorities are busy these days studying the optimal handling of a new tax project prepared by the Organization for Economic Cooperation and Development (OECD), which initially includes about 10 local companies operating in foreign markets and may be included among multinational companies.
The sources explained that there are clear tendencies that increasing the tax base imposed locally on Kuwaiti multinational companies is preferable to deducting the tax amount abroad.
It is learned hat the revenue range set by the organization will be no less than 750 million Euros annually means that several Kuwaiti companies are subject to this scope, and it is likely that the tax will be applicable next year.
The sources said, “It appears that there is international pressure on all countries, including Kuwait and the Gulf states, to increase their tax rate to 15 percent as a minimum.”
The sources revealed that major Kuwaiti companies present in foreign markets are currently working with their audit offices to create different scenarios to determine the method of their accounting to deal with the tax project expected to be approved by the OECD, whether the deduction comes locally or internationally.
The sources recalled the recommendations of the International Monetary Fund for Kuwait last June regarding financial reforms, which included expanding the corporate income tax by 15 percent to include local companies and fulfilling the requirements OECD greement regarding minimum taxes for multinational companies.
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