Latest news with #economicReform
The National
21 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.
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
3 days ago
- Business
- Zawya
Tunisia: PM arrives in Sevilla to take part in 4th UN International Conference on Financing for Development
Sevilla – Prime Minister Sarra Zaafrani Zenzri arrived Sunday in Seville, Spain, to take part in the 4th United Nations International Conference on Financing for Development (FfD4), scheduled from June 30 to July 1, 2025. She was seen in at Sevilla International Airport by Tunisia's Ambassador to Spain, Fatma Omrani Chargui. The Prime Minister will participate in a series of panels addressing various economic issues and is also expected to hold talks with heads of state and government, as well as officials from international financial institutions and global groups. This fourth edition of the FfD conference aims to reform financing mechanisms at all levels, notably by advancing international financial architecture reform and tackling barriers to investment. FfD4 brings together a wide range of government leaders, international and regional organisations, financial and trade institutions, businesses, civil society, and the UN system to rethink how the world funds sustainable development. © Tap 2022 Provided by SyndiGate Media Inc. (
Zawya
6 days ago
- Business
- Zawya
Jordan: IMF Executive Board approves 3rd review of Jordan's EFF Programme
AMMAN — The International Monetary Fund (IMF) has completed the third review of Jordan's four-year Extended Fund Facility (EFF), enabling the Kingdom to draw an additional $134 million, the Fund announced on Wednesday. The latest disbursement brings total financing under the EFF arrangement to nearly $595 million since its approval in January 2024. The programme aims to support Jordan's economic reform efforts and help maintain macroeconomic stability amid ongoing regional challenges. In a significant show of support, the IMF also announced a separate $700 million programme under the Resilience and Sustainability Facility (RSF), aimed at helping Jordan tackle long-term challenges in the energy, water, and health sectors. Following the IMF Board's meeting, Deputy Managing Director and Acting Chair Kenji Okamura praised Jordan for holding steady despite tough regional conditions. 'Growth in 2024 and so far in 2025 has exceeded expectations. Inflation is low, reserve buffers are strong, and the authorities are pursuing sound fiscal and monetary policies,' Okamura said. According to the IMF, Jordan's international reserves topped $20 billion by the end of 2024, and the country's external position remains stable, with the current account deficit projected to stay near 6 per cent of GDP. The Fund attributed the stable inflation and strong reserve position to the Central Bank for helping keep inflation in check and maintaining investor confidence through its commitment to the exchange rate peg. The Fund also welcomed the government's gradual steps to reduce public debt while maintaining essential spending on social support and public investment. Jordan recorded a 2.5 per cent growth rate in 2024, and economic activity is expected to gradually strengthen going forward. The new $700 million in RSF support will go toward reforms to strengthen the electricity and water sectors and boost Jordan's ability to respond to future health crises. 'These reforms are critical to strengthening Jordan's long-term economic resilience,' Okamura said. The IMF reaffirmed its backing for Jordan's broader reform plans, which focus on encouraging private-sector growth, improving the business environment, and creating more opportunities, especially for youth and women. The IMF emphasized the need for continued international support, noting that Jordan continues to feel the pressure of regional instability and the responsibility of hosting large numbers of refugees. © Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (
South China Morning Post
11-06-2025
- Business
- South China Morning Post
From AI to chips: China courts private tech firms to help drive next 5-year plan
China has signalled growing support for the private sector, as the head of the government department that oversees economic reform sat down with representatives of the tech industry to gather input ahead of Beijing's next five-year development blueprint , analysts said. Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC), met leaders from five private enterprises to 'gather opinions and suggestions for the scientific formulation of the '15th Five-Year Plan', with a focus on technological innovation', according to a statement published by the NDRC on Tuesday. Zheng said private enterprises could play a crucial role in helping Beijing formulate its next plan, which will cover the years 2026 to 2030. The private sector 'possesses strong innovation momentum, great potential and abundant vitality', he added, making private companies 'a key force in developing new quality productive forces'. Since the start of the year, the Chinese government has struck an increasingly private-sector-friendly tone. In February, President Xi Jinping held a rare high-level meeting with business heads – the first since 2018. In May, a new private sector law came into effect, promising fairer market competition, equal market access and stronger legal protections. Peng Peng, head of the Guangdong Society of Reform, a think tank affiliated with the provincial government, said the 15th Five-Year Plan would 'focus on technology and innovation as engines [for development], which means it needs to promote new and future-oriented industries.' 'Private companies have a lot more advantages in this regard. They are the key driving force in innovation.'
