Kuwait has announced plans to implement a new 15 per cent tax on multinational enterprises (MNEs) operating across multiple countries, set to take effect from January 1, 2025, under decree 157/2024.
Minister of Finance and Minister of State for Economic Affairs and Investments, Nora Al Fassam, said the tax aims to boost the national economy, enhance competitiveness, and support Kuwait’s economic development and financial sustainability goals.
The measure is part of the country’s strategy to diversify income sources and reduce dependence on oil revenues, aligning with Kuwait Vision 2035 “New Kuwait” for a more financially diversified and sustainable economy.
“The national economy is further supported by governmental legislations aiming to enhance business, attract investments and create jobs,” Al Fassam stated.
The ministry plans to conduct workshops and meetings with affected companies to prepare for the tax implementation. An executive bylaw will be issued to regulate tax enforcement.
The cabinet endorsed the draft resolution for the 15 per cent tax on MNEs during its weekly meeting last Tuesday.
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