Kuwait

Corporate - Significant developments

Last reviewed - 30 June 2025

Pillar Two developments in Kuwait

Domestic Minimum Top-up Tax (DMTT)

In December 2024, the government of Kuwait released its DMTT Law, which marks a significant milestone in the evolution of Kuwait’s tax framework. The Top-up Tax takes the form of a DMTT and will apply to large multinational enterprises (MNEs) that are in scope of Pillar Two effective from 1 January 2025. The tax will be imposed in cases where the MNE’s effective tax rate (ETR) in Kuwait is below 15%.

On June 30, 2025, the Ministry of Finance (MoF) published the “Executive Regulations” for the Domestic Minimum Top-Up Tax (DMTT) for Multinational Enterprises (MNEs) under Ministerial Resolution No. (55) of 2025. As anticipated, the Executive Regulations are largely in line with the GloBE Model Rules.

More details are provided under the 'Taxes on Corporate Income' section.