Law & Regulation
Domestic Minimum Top-up Tax Law
Issued 30 December 2024, imposes a 15% Domestic Minimum Top-up Tax on the Kuwait profits of multinational enterprise groups with global consolidated revenue of at least EUR 750 million in at least two of the preceding four fiscal years, aligned with OECD Pillar Two. Effective for financial years starting on or after 1 January 2025; Executive Regulations issued via Ministerial Resolution No. (55) of 2025 (30 June 2025).
Legal Significance
What This Instrument Does
Imposes a jurisdictional top-up tax on large in-scope multinational groups where their Kuwait effective tax rate falls below 15%.
Why It Matters
Directly relevant to any large multinational sponsor, contractor or financier active in Kuwait's infrastructure market that meets the revenue threshold.
Legal Framework Position
- TaxPrimary / Framework Instrument
Instrument Overview
- Official Citation
- Decree by Law No. (157) of 2024
- Instrument Type
- Decree
- Enactment Date
- 30 December 2024
- Effective Date
- 1 January 2025
- Last Verified
- 30 September 2026
Recent Developments
- Regulatory · 30 December 2024Kuwait issues Domestic Minimum Top-up Tax Law
Kuwait issued Decree by Law No. 157 of 2024 on 30 December 2024, introducing a 15% Domestic Minimum Top-up Tax on the Kuwait profits of large multinational enterprise groups, effective for financial years starting on or after 1 January 2025.