KUWAIT CITY, Dec 31: Decree No. 157 of 2024, issued yesterday, pertains to the tax law regulating multinational entities (MNEs) operating in Kuwait, reports Al-Seyassah daily. The law consists of 41 articles and is designed to align Kuwait’s tax system with global standards, particularly the OECD’s “Pillar Two” international tax reform initiative. Minister of Finance and Minister of State for Economic Affairs and Investment, Noura Al-Fassam, emphasized that the implementation of this tax law reaffirms Kuwait’s commitment to fostering economic development, financial sustainability and fair international tax practices. She highlighted that it aims to reduce dependency on oil revenues, diversify income sources and build a flexible economy capable of overcoming future challenges.

Additionally, she underscored the government’s focus on enhancing the business environment, attracting investments and creating job opportunities. Al-Fassam mentioned that the Ministry of Finance would reach out to the affected companies to provide education on the new law through workshops and meetings, with a dedicated timeline to ensure all relevant entities are informed. Furthermore, the Ministry plans to issue an executive regulation for the law shortly. The law is based on the OECD’s “Pillar Two,” which aims to ensure multinational companies pay a minimum tax rate on profits earned in each country they operate, thus curbing tax avoidance strategies such as profit shifting to low-tax jurisdictions.