Latest news with #DMTT
Gulf Insider
10 hours ago
- Business
- Gulf Insider
Kuwait Launches New Tax On Multinational Companies, Overhauls State Property Regulations
Kuwait has rolled out new tax regulations targeting multinational corporations and introduced sweeping reforms to the management of state-owned properties, the Ministry of Finance announced Monday. The measures, which is part of the country's New Kuwait 2035 vision, aim to support the government's efforts to achieve fiscal sustainability, diversify income sources, and align with international tax standards. The newly implemented framework includes the adoption of a Domestic Minimum Top-up Tax (DMTT), a supplementary tax mechanism falling under Pillar Two of the OECD's global tax reform agenda, which seeks to establish a minimum effective tax rate for large multinational corporations worldwide. In a statement released on Monday, the Ministry explained that the executive regulations are intended to clarify the law's provisions, define procedures and implementation mechanisms, and enhance transparency in line with internationally recognized standards. Minister of Finance and Minister of State for Economic Affairs and Investment Noura Al Fassam hailed the regulations as a 'major milestone' in Kuwait's economic reform journey, noting their significance in promoting tax equity and a fairer investment climate. She emphasized that the legislation reflects Kuwait's ongoing efforts to reduce its dependency on oil revenues and establish a more diversified and resilient economic model. Preliminary projections estimate that the new tax could generate approximately KD250 million annually, providing a significant boost to the state's fiscal capabilities. To support implementation, the Ministry of Finance will organize a series of awareness workshops for stakeholders and regulatory authorities in the coming weeks. Dates for these sessions will be announced soon. In a related development, the Ministry also issued Ministerial Resolution No. 54/2025, amending regulations on the use of state-owned properties and service fees initially set under Resolution No. 40/2016. According to Minister Al Fassam, the revised rules aim to strike a balance between public interest and fair access for individuals and institutions using public assets. The amendments cover a range of facilities, including chalets, rest houses, shopping malls, cooperative societies, banks, warehouses, sports clubs, schools, and hospitals. The new regulations include stabilizing agricultural land prices to support food security and boost local agricultural production, a move the Ministry said was based on comprehensive studies of Gulf and international pricing benchmarks. Al Fassam added that the revised fees and valuation models remain lower than GCC averages, reflecting Kuwait's unique social and economic conditions. The goal, she stressed, is to ensure equal opportunities while strengthening the state's non-oil revenue base in a sustainable and transparent manner.
The National
20 hours ago
- Business
- The National
Kuwait reveals rules for new multinationals tax and expects to raise $819m from it annually
Kuwait has revealed executive regulations for its tax on multinational entities in the country and expects the levy to add 250 million Kuwaiti dinars ($819 million) in revenues annually. The country's Ministry of Finance said the new regulations clarify details about the introduction of a supplementary domestic minimum tax (DMTT) under the multinational entities (MNEs) group tax. They "aim to interpret and clarify the provisions of the law, define procedures and implementation mechanisms, enhance transparency, and provide a clear understanding for relevant parties in line", the ministry said early this week. The tax rate was not specified, but the country had said in December that it was planning to impose a 15 per cent tax on multinationals in the country. The new legislation reflects Kuwait's strategy to diversify revenues away from the oil sector, said Noura Sulaiman Al-Fassam, Minister of Finance and Minister of State for Economic Affairs and Investment. The issuance of the regulations "represents a major milestone in the path of economic reform, given their role in providing a fair investment environment and enhancing tax justice", she said. She added that preliminary estimates indicate that the expected annual revenues from the tax could reach about 250 million Kuwaiti dinars, "enhancing the state's ability to build a resilient and sustainable economy". Kuwait's DMTT applies to multinational entities (Kuwaiti or foreign companies) operating in more than one country "whose total revenues meet or exceed annual revenues of €750 million ($885 million) in the consolidated financial statements of the parent entity for at least two of the four tax periods immediately preceding full year 2025", consultancy KPMG said in a note. Multinational entities should register by September 30 of this year, it said. The DMTT is in line with the Organisation for Economic Co-operation and Development's Pillar Two programme, which has set up a global minimum corporate tax to ensure large multinational enterprises pay a minimum 15 per cent tax on profits in each country where they operate. The proposed global minimum tax is expected to result in annual global revenue gains of about $220 billion, or 9 per cent of global corporate income tax revenue, the OECD said in 2023. The UAE last year also imposed the DMTT on large companies as part of changes to its corporate tax law. Large multinational enterprises are to pay a minimum of 15 per cent tax on the profits generated in the UAE (up from the current corporate tax rate of 9 per cent), effective for financial years starting on or after January 1, 2025. The DMTT applies to multinational enterprises with consolidated global revenues of €750 million or more in at least two of the four financial years immediately preceding the financial year in which the tax applies. Bahrain also said in September last year that it would introduce DMTT starting from January 1 on large multinationals. Most Gulf countries are introducing taxes as they seek to diversify their economies away from oil and strengthen non-hydrocarbon revenues. Oman is set to become the first in the region to introduce personal income tax from 2028. The Personal Income Tax Law, which was introduced last month, imposes a 5 per cent tax on annual income exceeding 42,000 Omani rials ($109,236), the Oman News Agency said reported. The law will levy tax on income derived from 'specific income types as defined by the law', the news agency said.
Gulf Insider
21 hours ago
- Business
- Gulf Insider
Kuwait Introduces Tax on Multinationals, Eyes $820M Revenue
The Kuwait Ministry of Finance has issued a landmark decree introducing executive regulations for taxing multinational enterprise (MNE) groups — marking a major step in the country's economic reform agenda and commitment to diversifying income beyond oil revenues. The decree (No. 55 of 2025) implements Law No. 157 of 2024, which brings Kuwait in line with the OECD's Pillar Two global minimum tax framework through the introduction of a Domestic Minimum Top-up Tax (DMTT). According to the Ministry, the new regulation clarifies legal provisions, outlines implementation mechanisms, and enhances transparency in accordance with international best practices. The Ministry said the move aligns with Kuwait Vision 2035, which aims to build a more diversified and resilient economy. Finance Minister and Minister of State for Economic and Investment Affairs, Eng. Nora AlFusam, said the regulation is pivotal for creating a fair investment environment and enhancing tax justice. She added that expected annual revenues from the tax could reach around KD250m ($820m), helping build a resilient and sustainable economy. The Ministry of Finance will organise a series of awareness workshops to help explain the new tax law and its executive regulations to relevant stakeholders, ensuring smooth implementation and full compliance. The tax applies specifically to large multinational groups operating in Kuwait, in accordance with global tax fairness principles outlined by the Organisation for Economic Cooperation and Development (OECD). Also Read: Kuwait Bans Charities From Hiring Influencers And Preachers Without Prior Approval
Arabian Business
a day ago
- Business
- Arabian Business
Kuwait introduces tax rules, expects $820m in revenue
The Kuwait Ministry of Finance has issued a landmark decree introducing executive regulations for taxing multinational enterprise (MNE) groups — marking a major step in the country's economic reform agenda and commitment to diversifying income beyond oil revenues. The decree (No. 55 of 2025) implements Law No. 157 of 2024, which brings Kuwait in line with the OECD's Pillar Two global minimum tax framework through the introduction of a Domestic Minimum Top-up Tax (DMTT). According to the Ministry, the new regulation clarifies legal provisions, outlines implementation mechanisms, and enhances transparency in accordance with international best practices. New Kuwait tax rules The Ministry said the move aligns with Kuwait Vision 2035, which aims to build a more diversified and resilient economy. Finance Minister and Minister of State for Economic and Investment Affairs, Eng. Nora AlFusam, said the regulation is pivotal for creating a fair investment environment and enhancing tax justice. She added that expected annual revenues from the tax could reach around KD250m ($820m), helping build a resilient and sustainable economy. The Ministry of Finance will organise a series of awareness workshops to help explain the new tax law and its executive regulations to relevant stakeholders, ensuring smooth implementation and full compliance. The tax applies specifically to large multinational groups operating in Kuwait, in accordance with global tax fairness principles outlined by the Organisation for Economic Cooperation and Development (OECD).
Zawya
2 days ago
- Business
- Zawya
Kuwait rolls out MNE top-up tax
KUWAIT CITY - In line with the New Kuwait 2035 vision to diversify the sources of income and achieve financial sustainability, the Ministry of Finance announced the issuance of Ministerial Resolution No. 55/2025 on the executive regulations of Decree-Law No. 157/2024 concerning the Multinational Entity Group (MNEs) Tax. This includes the implementation of a supplementary Domestic Minimum Top-up Tax (DMTT), under the requirements of the second pillar of the Organization for Economic Co-operation and Development (OECD). In a press release issued by the Ministry of Finance, it stated that the new regulations aim to clarify and interpret the law's provisions, define procedures and implementation mechanisms, enhance transparency, and provide stakeholders with a clear understanding, in line with international policies and standards in this field. In this regard, Minister of Finance and Minister of State for Economic Affairs and Investment Noura Al-Fassam affirmed that the issuance of these regulations marks a major milestone in Kuwait's economic reform journey, highlighting their role in providing a fair investment environment and promoting tax equity. She emphasized that the new legislation reflects Kuwait's commitment to achieving fiscal balance and diversifying revenue sources away from reliance on the oil sector. Minister Al-Fassam stressed that preliminary estimates suggest the tax could generate approximately KD 250 million annually, thus strengthening the state's capacity to build a resilient and sustainable economy capable of withstanding future challenges. She announced that the ministry plans to hold a series of awareness workshops in the coming period to support the law's implementation and clarify the details of the executive regulations for relevant authorities and specialists, with dates to be announced in due course. In other news, the Ministry of Finance issued Ministerial Resolution No. 54/2025 that amends the regulations governing the use of stateowned properties and service fees specified in Resolution No. 40/2016, reports Al-Seyassah daily. Minister of Finance and Minister of State for Economic Affairs and Investment Noura Al-Fassam explained that the new amendments aim to achieve a fair balance between the use of such properties by individuals and entities and the public interest, ensuring clear procedures and enhancing transparency in transactions. The amended regulations cover the use of various activities, including chalets, rest houses, shopping malls, cooperative societies, banks, warehouses, as well as sports clubs, schools, and hospitals. The resolution includes stabilizing agricultural plot prices to support food security and encourage local production. She said the amendments were based on an extensive study of pricing trends at both Gulf and international levels. Minister Al-Fassam explained that the revised prices are lower than the average prices in GCC countries, taking into account Kuwait's economic and social conditions. The aim is to ensure equal opportunities for all as well as enhance state revenues on a sustainable basis.
