Kuwait kicked off 2025 with the implementation of a 15 per cent tax on multinational companies with effect from January 1.
The new tax is part of the country’s broader effort to promote economic development, ensure financial sustainability, and foster a level playing field for international taxes.
Additionally, it aims to diversify the country’s income sources, reduce reliance on oil revenues, and build a resilient economy capable of tackling future challenges, Noora Al-Fassam, Minister of Finance and Minister of State for Economic Affairs and Investment of Kuwait, said.
The implementation of a new tax on multinational entities (MNEs) in the country will help enhance the diversity and competitiveness of the national economy, the minister was quoted as saying in a press release issued by the Ministry of Finance.
The 15 per cent corporate tax on multinational companies was introduced under Decree No. (157) of 2024.
Al-Fassam noted that Kuwait’s economy is entering a new phase characterised by greater diversity and competitiveness, supported by government legislation aimed at improving the business environment, attracting investments, and generating job opportunities.
The new tax will require multinational entities to pay a minimum of 15 per cent tax on taxable income generated in Kuwait.
The move is aligned with the vision of “New Kuwait 2035”, which seeks to create a more diversified and financially sustainable economy that is not overly reliant on a single source of income.
Additionally, the tax is part of ongoing economic reforms aimed at enhancing Kuwait’s tax system.
The Minister also indicated that she will engage with the companies impacted by the new tax and will organise educational workshops and meetings to ensure a smooth implementation.
She further stated that an executive regulation for the law will soon be issued to guide the implementation process.
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