Kuwait to Implement Minimum Top-Up Tax on Multinational Enterprises Starting in January CAIRO, Dec 30 (Reuters) — In a significant fiscal development, Kuwait is set to introduce a minimum top-up tax (DMTT) of 15% on multinational corporations operating within its borders, beginning next month, as confirmed by the finance ministry on Monday.
This tax initiative is part of Kuwait’s broader strategy to diversify its revenue streams, reducing its dependence on oil-related income. The finance ministry indicated that such measures are essential for ensuring economic resilience in a rapidly changing global landscape. The DMTT aligns with the guidelines established by the Organisation for Economic Co-operation and Development (OECD) as part of its Two-Pillar Solution.
This framework mandates that large multinational entities must pay a minimum effective tax rate of 15% on profits earned in each jurisdiction in which they operate. This latest decision by Kuwait mirrors a similar strategy adopted by the United Arab Emirates, which will also implement a 15% tax on large multinationals starting January 1, 2024. Such moves reflect a regional trend aimed at bolstering non-oil revenues amid ongoing economic diversification efforts across the Gulf Cooperation Council (GCC) countries.
