Kuwait Introduces 15% Corporate Tax by 2025 to Join OECD, Tax Multinationals
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Kuwait plans to introduce a new 15% corporate tax called the Business Profits Tax Law by 2025 as part of tax reforms to join OECD group.
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The tax will apply to corporate entities, partnerships and separate legal entities established or operating in Kuwait, excluding individuals and small businesses.
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Currently, only foreign companies are taxed on Kuwait-sourced income. No income tax is imposed on GCC-owned companies.
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The reforms aim to prevent multinational corporations from shifting profits to low tax jurisdictions.
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Kuwaiti multinationals with over €750 million revenue will be subject to the tax from 2025 under the Pillar Two framework.