Kuwait to impose 15% minimum top-up tax on multinational enterprises

CAIRO: Kuwait will impose a minimum top-up tax (DMTT) of 15% on multinational enterprises operating in the country, starting in January, the finance ministry said on Monday.

The finance ministry said the implementation of the tax comes under its efforts to diversify the Gulf country’s sources of income.

The DMTT comes under the Organisation for Economic Co-operation and Development’s (OECD) Two-Pillar Solution, which stipulates that large multinational enterprises pay a minimum effective tax rate of 15% on profits in each country where they operate.

The move follows the United Arab Emirates imposing a similar tax on large multinational companies operating in the country from January under efforts to boost non-oil revenue.