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Gulf Insider
02-07-2025
- 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.
Arab Times
29-03-2025
- Business
- Arab Times
Illegal domestic workers major risk to Kuwaitis, gov't interests
KUWAIT CITY, March 29: Illegal domestic workers continue to cause big challenges for licensed domestic labor recruitment offices, beyond their economic impact that undermines State revenues. This includes losses from medical examination fees, residency renewal costs, flight operations and other indirect financial contributions, such as boosting the economy. The detrimental effects of illegal workers are numerous, presenting health risks to families while some workers receive monthly salaries of up to KD280. Head of the Domestic Labor Disputes Department at the Public Authority for Manpower (PAM) Musaed Al-Hajri talked about the dangers posed by illegal workers, citing harm to families and waste of State resources. In an interview with Kuwait TV, Al-Hajri explained that licensed recruitment agencies must renew their licenses annually for a fee that benefits the State. 'However, some families opt for illegal workers, which not only burdens them financially but also exposes them to increased risks, as these workers are often expensive and unsponsored. He pointed out that legal domestic workers contribute to the local economy, considering their food and clothing expenses are covered by employers and by stimulating air traffic and generating revenue from medical examinations and residency transfer fees. Munir Al-Asimi, owner of a domestic labor agency, expressed his concerns indicating that illegal agencies advertise on social media, often without an office or license. 'These individuals rely on their networks to smuggle workers from their original sponsors, offering high monthly salaries, sometimes reaching KD250 to KD280, but without official documentation,' he revealed. Al-Asimi warned that illegal workers might have contagious diseases or criminal backgrounds thereby, posing significant dangers to both citizens and expatriates. Bassam Al-Shammari, another domestic labor agency owner, called for the formal and legal establishment of recruitment agreements with various countries through new memoranda of understanding. He also proposed setting a minimum wage of KD120, and creating a new and swift mechanism for resolving labor disputes that ensures the recovery of all legally stipulated dues. He stressed the importance of enforcing laws regarding financial entitlements, weekly off, end-of-service benefits and annual leave; as well as activating a blacklist for non-compliant employers. Al-Asimi mentioned three major harms that unlicensed domestic workers pose to citizens as follows: 1. Risk of crime: Unlicensed workers may commit crimes and flee, making it difficult for citizens to protect their rights. 2. Health threats: These workers could be carriers of contagious diseases that might spread to family members. 3. Legal consequences: Employers of unlicensed workers may be accused of concealing criminal activity. The government also faces several challenges due to the presence of unlicensed domestic workers: 1. Difficulty in prosecution: The illegal status of such workers makes it harder for authorities to hold them accountable. 2. Health risks: The spread of diseases from unlicensed workers is a public health concern. 3. Wastage of State resources: Illegal workers drain resources that could otherwise benefit the State.
