Kuwait to impose 15% tax on multinational companies

WAM

Kuwait will impose a 15 percent tax on multinational companies operating across multiple jurisdictions from January 1 2025.

The cabinet gave a go-ahead to the draft law at the weekly meeting headed by prime minister Sheikh Ahmad Al Sabah, state-run Kuwait News Agency reported.

The proposed tax is in line with the global tax standards and strives to combat tax evasion and prevent tax revenues from being diverted to other countries.

No other details were given.

This month the UAE’s finance ministry said it will increase corporate tax on large multi-national enterprises to 15 percent from January 1 from the current 9 percent of their profits in the Emirates.

The domestic minimum top-up tax (DMTT) will apply to multi-national enterprises with consolidated global revenues of €750 million ($793 million) or more in at least two of the four financial years immediately preceding the financial year in which the tax applies.

Bahrain said in September that it would also introduce DMTT from January 1 next year on large multi-nationals.

Oman has put its plan to introduce personal income tax for high earners on hold following a meeting of the sultanate’s State Council earlier this month.

Under the initial draft bill, first introduced in 2022, foreign nationals in Oman who earn over $100,000 would be taxed between 5 to 9 percent from 2026. Omani citizens would be taxed 5 percent on global income exceeding $1 million.