According to a recent report, the Kuwaiti government is planning to broaden the scope of corporate income tax to include all entities in Kuwait at a rate of 15%, except for small enterprises. Currently, the CIT is 15% for foreign companies carrying out business or trade in Kuwait and are subject to tax on their profits and capital gains income. This expansion of corporate income tax to include all businesses in Kuwait is in response to the global minimum tax under Pillar 2.
Corporate income tax implementation in Kuwait will be executed in two distinct phases. The initial phase, effective from 1 January 2025, will apply the tax to large Multinational Enterprises (MNEs) with annual revenues exceeding EUR 750 million. Subsequently, in the second phase starting 1 January 2026, the corporate income tax will be extended to cover other legal entities operating in Kuwait, excluding individuals and small-sized enterprises.
