Kuwait approves 15% tax on multinationals
- By Web Desk -
- Dec 29, 2024
The Kuwait government has okayed a draft resolution introducing a 15% tax on multinational companies operating across multiple countries.
The measure passed by the Kuwaiti cabinet is aimed at curbing tax evasion and preventing the shifting of tax revenues to foreign jurisdictions, will take effect on January 1, 2025.
The decision was made during the Cabinet’s weekly meeting chaired by His Highness the Prime Minister, Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah.
The new tax aligns with global tax standards and is designed to ensure that multinational entities contribute fairly to the national tax base.
Deputy Prime Minister and Minister of State for Cabinet Affairs, Shereeda Al-Mousherji, confirmed the approval in a statement to the Kuwait News Agency.
In a related development, Dr. Anwar Ali Al-Mudhaf, Kuwait’s Minister of Finance and State for Economic Affairs, emphasized the significance of an agreement signed between Kuwait and the UAE aimed at avoiding double taxation on income and capital.
The agreement, intended to combat tax evasion and avoidance, reflects the strengthening economic and financial ties between the two nations. It is expected to encourage further economic integration and improve the free flow of capital between the UAE and Kuwait.
Dr. Al-Mudhaf also highlighted the importance of Kuwait’s participation in the 8th Arab Fiscal Forum, held as part of the World Governments Summit (WGS) 2024.
He noted that the forum serves as a platform for discussing global challenges and future opportunities, reinforcing Kuwait’s commitment to addressing key global economic issues.
Meanwhile, the UAE Ministry of Finance has announced updates to its tax provisions under Federal Decree-Law No. 47 of 2022.
These updates, which include the introduction of a Domestic Minimum Top-up Tax (DMTT) and corporate tax incentives, will support the country’s efforts to align with global tax standards, particularly those set by the Organisation for Economic Co-operation and Development (OECD).