Kuwait Ministry of Finance has introduced an optional advance payment programme under Circular No. (1) of 29 April 2026 for MNE groups subject to the 15% DMTT, allowing early settlement of estimated liabilities for periods ending on or before 31 March 2026 in return for administrative priority benefits.
Kuwait’s Ministry of Finance has issued Circular No. (1) of 29 April 2026 introducing an optional Advance Tax Payment Program for multinational enterprise (MNE) groups that fall within the scope of the Multinational Entities Tax Law, Law (Decree) No. (157) of 2024.
The mechanism applies to the supplementary domestic minimum top-up tax (DMTT) at a rate of 15% effective from 1 January 2025 and covers tax periods ending on or before 31 March 2026.
Under the Circular, participating taxpayers must submit an application to the Ministry of Finance by 31 May 2026, together with a calculation of the estimated DMTT payable in Kuwaiti dinars. The estimated tax must then be paid in a single instalment by 30 June 2026 and will be treated as an advance payment against the final tax liability when the return is filed. A provisional DMTT statement in a prescribed format is also required by the same deadline.
The system is optional and does not amend existing obligations for filing the final DMTT return or payment deadlines, which remain within 15 months after the end of the relevant tax period. There are no penalties for taxpayers choosing not to participate.
Taxpayers opting into the programme will receive administrative incentives, including priority in tax audits, assessments, refund processing, and review of objections and appeals, as well as priority in issuance and renewal of tax cards.
The initiative is intended to facilitate early tax collection while offering procedural benefits to participating MNEs, and will effectively apply mainly to the first DMTT period for most taxpayers.
