Kuwait has announced it will introduce a new tax on multinational companies to diversify income and sustain financial growth.
The tax rate has not been confirmed, but the country had said in December that it was planning to impose a 15% tax on multinationals based in Kuwait.
The Ministry of Finance said the regulations are designed to clarify the law’s provisions, enhance transparency, and align with international standards. Noura Al-Fassam,  Minister of Finance and Minister of State for Economic Affairs and Investment, emphasised that this marks a significant milestone in Kuwait’s economic reform, promoting a fair investment environment and tax equity.
The expected annual revenues from the tax could reach KD250m ($820m).
The new tax regulations are specified under Ministerial Resolution No. 55/2025, aimed at diversifying income sources and achieving financial sustainability as part of the New Kuwait 2035 vision. These regulations are tied to Decree-Law No. 157/2024 concerning the Multinational Entity Group (MNEs) Tax and include a Domestic Minimum Top-up Tax (DMTT) aligned with OECD guidelines.
Additionally, Ministerial Resolution No. 54/2025 amends regulations on state-owned properties and service fees. This aims to balance usage between individuals, entities, and the public interest, covering activities like chalets, shopping malls, and hospitals.
Kuwait’s DMTT applies to multinational entities 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.
Multinational entities should register by September 30 2025.
