Kuwait has published Decree-Law No. 62 of 2026 to approve accession to the OECD's Multilateral Convention on BEPS, completing its domestic ratification process nearly a decade after originally signing the instrument in June 2017. The MLI will begin modifying Kuwait's covered tax treaties once the country deposits its instrument of ratification.
Kuwait has published Decree-Law No. 62 of 2026 in the Official Gazette on 7 June 2026, approving the country’s accession to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
The decree completes Kuwait’s domestic approval process for the convention, which the country originally signed on 7 June 2017. To bring the MLI into force for its covered agreements (tax treaties), Kuwait must now deposit its instrument of ratification.
According to the explanatory memorandum accompanying the decree, the accession forms part of Kuwait’s efforts to strengthen tax transparency, address harmful tax practices, and align its framework with international standards developed by the Organisation for Economic Co-operation and Development (OECD).
The memorandum notes that the convention is designed to counter base erosion and profit shifting (BEPS) strategies used by some multinational enterprise groups to shift profits from jurisdictions where economic activities take place to jurisdictions with low or no taxation. Such practices can reduce tax revenues and create challenges for tax administrations worldwide.
Kuwaiti authorities highlighted the need for coordinated international action to address BEPS risks and emphasised the principle that profits should be taxed where substantive economic activities are carried out and value is created.
The government also stated that accession to the MLI supports the modernisation of Kuwait’s tax framework and reinforces its commitment to internationally recognised tax standards. The measure is expected to strengthen the integrity of Kuwait’s tax treaty network while supporting greater transparency and certainty in cross-border taxation.
Once the ratification instrument is deposited, the MLI will enter into force for Kuwait in accordance with the convention’s provisions and will begin modifying the application of covered tax treaties where both treaty partners have adopted the relevant measures.
