The Kuwait Ministry of Finance has issued a landmark decree introducing executive regulations for taxing multinational enterprise (MNE) groups marking a major step in the countrys economic reform agenda and commitment to diversifying income beyond oil revenues.
The decree (No. 55 of 2025) implements Law No. 157 of 2024, which brings Kuwait in line with the OECDs Pillar Two global minimum tax framework through the introduction of a Domestic Minimum Top-up Tax (DMTT).
According to the Ministry, the new regulation clarifies legal provisions, outlines implementation mechanisms, and enhances transparency in accordance with international best practices.
The Ministry said the move aligns with Kuwait Vision 2035, which aims to build a more diversified and resilient economy.
Finance Minister and Minister of State for Economic and Investment Affairs, Eng. Nora AlFusam, said the regulation is pivotal for creating a fair investment environment and enhancing tax justice.
She added that expected annual revenues from the tax could reach around KD250m ($820m), helping build a resilient and sustainable economy.
The Ministry of Finance will organise a series of awareness workshops to help explain the new tax law and its executive regulations to relevant stakeholders, ensuring smooth implementation and full compliance.
The tax applies specifically to large multinational groups operating in Kuwait, in accordance with global tax fairness principles outlined by the Organisation for Economic Cooperation and Development (OECD).
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