Kuwait's 15% Tax to Impact 350 Foreign Companies and 20 Local Firms

Kuwait, 7 January, 2025 : Kuwait's new 15% tax law, effective from tax periods starting January 1, targets multinational entities with annual revenues exceeding 750 million euros. A nine-month grace period is provided for companies to register without penalties.

The Ministry of Finance estimates that around 20 Kuwaiti companies and 300-350 foreign multinationals will be affected by the tax, which will apply if their actual tax rate is below the 15% minimum. The law aims to generate approximately 250-300 million Kuwaiti dinars annually for the public treasury.

The tax will be calculated on the net profits of qualifying companies, based on the difference between their actual tax rate and the 15% threshold. The law also includes provisions for multinational groups, joint ventures, and affiliated entities that meet the revenue criteria.

The new law aligns with Kuwait Vision 2035, promoting economic diversification and enhancing tax practices to curb revenue leakage.