Kuwait is preparing to collect nearly KD250 million each year through a newly applied global company tax. The country introduced a 15 percent minimum tax targeting multinational firms that operate across different jurisdictions.
This financial move follows a broader international effort to ensure tax fairness and reduce profit shifting. While the domestic minimum top-up tax (DMTT) took effect earlier this year, the finance ministry just released the detailed executive regulations.
These new rules clearly explain how the global company tax will work. They also outline procedures for its proper enforcement and aim to boost transparency in line with global standards.
Finance Minister Nora Al-Fusam emphasized the importance of this development. According to her, the tax will strengthen state revenues while decreasing Kuwait’s reliance on oil. This supports the country’s long-term economic goals and helps diversify its income sources.
The global company tax applies to firms with operations in multiple countries. It ensures they pay at least a 15 percent tax rate in each location. If the firm pays below that rate elsewhere, Kuwait will apply a top-up to bring the effective rate to 15 percent.
Moreover, the finance ministry confirmed that the regulation aligns with OECD guidelines. As a result, Kuwait strengthens its position as a responsible participant in the global tax framework.
Industry experts see this as a positive step for Kuwait’s fiscal sustainability. The country has faced pressure to reduce its oil dependency. Through the global company tax, Kuwait creates a more balanced and resilient economy.
In addition, the tax may encourage multinational firms to adjust their tax strategies. More companies could look to align operations with compliance standards to avoid penalties or additional tax burdens.
By promoting transparency and consistent tax enforcement, Kuwait also improves its global investment reputation. Investors increasingly seek countries with clear, fair, and modern fiscal policies.
The executive regulation not only clarifies the law but also sends a message of serious economic reform. Kuwait aims to modernize its public finance structure and make taxation more predictable.
With continued commitment to fiscal reform, the government hopes to build a stronger, more sustainable economy for future generations.
