Kuwait to impose 15% min top-up tax on multinational enterprises operating in the country, starting in January.
Kuwait to Impose 15% Minimum Tax on Multinational Companies
Kuwait: The Kuwaiti government announced on Monday that it will introduce a 15% minimum top-up tax (DMTT) on multinational enterprises (MNEs) operating within the country, effective from January 2025.
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This move aligns with the global push to ensure large corporations pay their fair share of taxes.
The implementation of the DMTT is a key step in Kuwait’s efforts to diversify its revenue sources beyond oil dependence. This initiative follows the lead of the United Arab Emirates, which recently introduced a similar tax on multinational companies operating within its borders.
Global Tax Reform: Kuwait to impose 15% min top-up tax on multinational enterprises
The DMTT falls under the Organization for Economic Co-operation and Development’s (OECD) Two-Pillar Solution. This international agreement aims to establish a global minimum effective tax rate of 15% for large multinational corporations, preventing them from shifting profits to low-tax jurisdictions.
Key Implications: Kuwait to impose 15% min top-up tax on multinational enterprises
- Increased Government Revenue: The new tax is expected to generate significant additional revenue for the Kuwaiti government.
- Fairer Tax System: The DMTT aims to ensure a more equitable tax system for multinational corporations operating in Kuwait.
- Alignment with Global Standards: This move demonstrates Kuwait’s commitment to international tax standards and cooperation.
The introduction of the DMTT marks a significant step towards modernizing Kuwait’s tax system and enhancing its fiscal sustainability.
Kuwait to impose 15% min top-up tax on multinational enterprises operating in the country, starting in January.
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