Latest news with #Decree-LawNo.157
Arab Times
a day ago
- Business
- Arab Times
Kuwait rolls out MNE top-up tax
KUWAIT CITY, June 30: 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.
Arab Times
2 days ago
- Business
- Arab Times
Kuwait moves to diversify revenue with new MNE tax framework
KUWAIT CITY, June 30: The Ministry of Finance announced on Sunday the issuance of the executive regulations for the Multinational Entities Group Tax Decree-Law, describing it as a major milestone in Kuwait's economic reform agenda and a testament to the country's commitment to achieving financial stability and diversifying its revenue streams. In a statement, the Ministry confirmed that Ministerial Resolution No. 55 of 2025 has been issued to implement Decree-Law No. 157 of 2024, which governs the taxation of multinational entities (MNEs) operating in Kuwait. The legislation includes the introduction of a supplementary Domestic Minimum Tax (DMTT), developed in accordance with the Organisation for Economic Cooperation and Development's (OECD) second pillar of the global tax framework. The Ministry noted that the executive regulations aim to clarify the law's provisions, define implementation procedures, enhance transparency, and provide clear guidance to relevant stakeholders in line with international best practices and standards. Minister of Finance and Minister of State for Economic Affairs and Investment, Eng. Noura Al-Fassam, emphasized that the implementation of these regulations marks a significant step in the nation's reform journey. 'This is a key development that contributes to creating a fair investment environment and promoting tax justice,' she said. Al-Fassam added that the new legislation aligns with Kuwait's development strategy, New Kuwait 2035, which seeks to diversify income sources and reduce reliance on oil revenues. She stated that initial projections indicate potential annual revenues of approximately KD 250 million from the new tax, thereby enhancing the state's capacity to build a resilient and sustainable economy capable of meeting future challenges. The Minister also revealed that the Ministry is planning to organize a series of awareness workshops in the near future. These sessions will aim to support the implementation of the law and provide detailed explanations of the executive regulations to the relevant authorities and specialists. Dates and details of the workshops will be announced in due course.
