KUWAIT CITY, Jan 7: To boost non-oil revenues and mitigate the effects of fluctuations in global oil prices on the state budget, Minister of Finance and Minister of State for Economic Affairs and Investment, Noura Al-Fassam, expects the newly introduced tax on multinational entities to generate approximately 250 million dinars annually (about 800 million US dollars).

In an interview with Sky News Arabia, Al-Fassam shared that Kuwait is currently focused on implementing financial and economic reforms aimed at improving government efficiency, fostering the private sector, attracting investments, creating job opportunities, diversifying income sources, and ensuring tax fairness. Early estimates suggest that the new tax will affect around 300 multinational groups operating within the country.

Under Decree No. 157 of 2024, issued on December 30, Kuwait introduced a supplementary local minimum tax of at least 15 percent on multinational entities that operate across multiple countries or jurisdictions.

Regarding taxation on foreign and local companies, sources indicate that while income tax is already levied on foreign firms in Kuwait, extending this tax to local companies would require a "high-level" decision. The temporary absence of the National Assembly is seen as a potential opportunity to pass several economic reforms that had previously been rejected for political or electoral reasons.

The sources also noted that imposing taxes on Kuwaiti citizens or local companies is unlikely, at least for now. However, increasing fees, such as residency and transaction fees for expatriates and visitors, is under serious consideration as part of broader efforts to strengthen the state budget and support financial reforms.