Kuwait has adopted OECD’s Pillar Two global minimum tax with the publication of Decree No. 157/2024 in the Official Gazette on 30 December 2024.
The decree imposes a 15% minimum tax rate on multinational enterprise (MNE) groups that generate over EUR 750 million in annual consolidated revenue for at least two of the past four years.
Qualifying MNEs must register within nine months of the decree’s implementation or within 120 days of becoming subject to the tax. The decree also clarifies how taxable income should be calculated and specifies the applicable tax period for determining tax liabilities under the new rules.
In order to enhance transparency and provide precise data, enabling tax authorities to accurately assess tax obligations, the decree requires affected companies to submit comprehensive tax declarations, detailing global revenues, operational expenses, provisions, taxes paid in each jurisdiction, and economic activities conducted by entities in each country.
The law also enforces financial penalties on companies that fail to submit declarations on time or provide incorrect information. Legislators have the authority to impose additional sanctions, including the suspension of certain privileges for non-compliant companies.
