KUWAIT CITY, Dec 31:  Minister of Finance and Minister of State for Economic Affairs and Investment, Noora Al-Fassam, stated on Monday that the implementation of a new tax on multinational entities (MNEs) in Kuwait will help enhance the diversity and competitiveness of the national economy.

In a statement quoted in a press release from the Ministry of Finance, Al-Fassam highlighted that the tax, introduced under Decree No. (157) of 2024, will take effect on January 1, 2025. She explained that the new tax is part of Kuwait’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.

Al-Fassam noted that Kuwait’s economy is entering a new phase characterized 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 percent tax on taxable income generated in Kuwait. This 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 organize 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.