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Supplementary Tax on the Multinational Group of Entities (DMTT)

In November 2023, the State of Kuwait joined the Comprehensive Framework of the Organization for Economic Cooperation and Development (OECD), as it approved its two-pillar reform. To date, more than 140 countries have signed, including the Gulf Cooperation Council, on this international tax reform.

State of Kuwait has issued Law No. 157 of 2024 on 31 December 2024, regarding new Tax Law on the Multinational Entities Group which implements DMTT that is aligned with OECD Pillar Two Global Anti-Base Erosion Model Rules (“the GloBE Rules”).

The new law will come into effect from the first of January 2025 and will only apply to the group of multinational entities (MNEs’) that generate income from State of Kuwait and operate in more than one country or jurisdiction and whose annual global revenues are not less than EUR 750 million for at least two of the past four years.

The implementation of this initiative aims to ensure that multinational entities pay the minimum tax of 15% on taxable income generated in Kuwait.

In-scope MNE’s is subject to the compliance to this new Supplementary Tax on the Multinational Group of Entities (DMTT), Decree No. 157 of 2024, issued by the State of Kuwait.

 

Publications:

Supplementary Tax Law on the Multinational Group of Entities (DMTT), Decree No. 157 of 2024, Kuwait

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