Kuwait Approves 15% Tax on Multinational Companies

Oman and Kuwait are set to implement a 15% Domestic Minimum Top-up Tax (DMTT) on multinational enterprises (MNEs) starting in January 2024 and January 2025, respectively. This tax is part of the OECD's Two-Pillar Solution, aimed at ensuring large corporations pay a minimum effective tax rate in each country they operate, thereby curbing tax evasion. In Kuwait, the law was approved by the Cabinet to prevent tax base erosion and encourage fair tax contributions, reinforcing the nation's commitment to international tax reform. Meanwhile, Oman has announced its DMTT as part of a broader trend in the Gulf region, following similar actions by the UAE and Bahrain. Kuwait's new legislation aligns with global standards and is expected to foster economic ties with the UAE through a double taxation agreement. Both countries' initiatives reflect a significant shift towards enhancing tax compliance among MNEs operating in the Gulf region.