KUWAIT CITY, Oct 3: Intensive deliberations are ongoing to avert the potential imposition of taxes on Kuwaiti multinational corporations operating in foreign markets. Initial indications propose that Kuwait might implement taxes on these companies at a rate of up to 15 percent, reports Al-Rai daily.

According to reliable sources the relevant authorities are presently engrossed in examining the best approach to a new tax proposal presented by the Organization for Economic Cooperation and Development (OECD). This proposal initially targets approximately 10 local companies engaged in foreign operations and may eventually encompass multinational corporations.

The sources clarified that there is a distinct inclination towards expanding the tax base imposed on Kuwaiti multinational enterprises domestically rather than reducing the tax amount on foreign soil.

It has been disclosed that the organization has set a minimum annual revenue threshold of 750 million Euros. Several Kuwaiti companies fall within this range, making them subject to this tax, which is likely to be enforced in the coming year.

The sources emphasized, "It appears that there is mounting international pressure on all nations, Kuwait and the Gulf states included, to raise their tax rates to a minimum of 15 percent."

Additionally, the sources unveiled that prominent Kuwaiti companies with a presence in international markets are presently collaborating with their audit offices to formulate various scenarios for accounting methods in response to the anticipated tax proposal by the OECD, whether the deduction takes place locally or internationally.

Recalling the International Monetary Fund's recommendations for Kuwait in June regarding financial reforms, which emphasized a 15 percent expansion of corporate income tax to encompass local enterprises and fulfill OECD requirements concerning minimum taxes for multinational corporations.