Kuwait has formally submitted a request to join the Organization for Economic Cooperation and Development (OECD) in its endeavor to become part of the draft tax law agreement framework.
The Al-Rai daily has learned from informed sources that this agreement is focused on implementing a minimum tax for multinational corporations.
It’s important to note that Kuwait is currently not a member of the comprehensive framework or the draft “economic cooperation” law, which involves 140 participating countries.
However, significant Kuwaiti companies engaged in diverse markets, especially those generating annual revenues exceeding 750 million euros from multiple markets, will be impacted by the tax outcomes of this law.
Sources have highlighted that in order to maximize Kuwait’s benefits from this agreement the country has sought inclusion in the framework of agreements among the organization’s member nations regarding the draft law. This inclusion will cover Kuwaiti companies and foreign entities operating within the local market. Under this agreement, they may potentially face higher tax obligations to Kuwait, possibly reaching a tax rate of 15 percent for multinational corporations.
Additionally, sources have revealed that the tax base envisioned by the OECD won’t solely encompass multinational corporations from the private sector.
It’s likely to extend to government entities involved in investment activities across various markets. These entities, supported by their home countries, may be subject to the tax regulations outlined in the agreement.
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