Kuwait has introduced a 15% Domestic Minimum Top-up Tax (DMTT) on large multinational enterprises, effective January 1, 2025. Under Decree 157/2024, the tax targets companies with annual global revenues exceeding €750 million, ensuring they meet the minimum corporate tax rate set by the OECD’s global Pillar Two framework.
Finance Minister Noora Al-Fassam stated that this move supports Kuwait Vision 2035 by diversifying income sources, reducing oil dependency, and enhancing financial sustainability. The tax is expected to impact around 300–350 multinational firms, along with about 20 domestic companies, generating estimated revenues of KD 250–300 million (US $820 million) annually.
The government will organize awareness workshops and release executive regulations to guide implementation. Firms paying below 15% will be required to pay a top-up supplement, while an enhanced withholding tax will apply to non-resident payments. The reforms are part of Kuwait’s broader efforts to modernize its tax system and promote fair business practices.
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