Kuwait launches new tax on multinational companies, overhauls state property regulations

Dubai: Kuwait has rolled out new tax regulations targeting multinational corporations and introduced sweeping reforms to the management of state-owned properties, the Ministry of Finance announced Monday.

The measures, which is part of the country’s New Kuwait 2035 vision, aim to support the government’s efforts to achieve fiscal sustainability, diversify income sources, and align with international tax standards.

The newly implemented framework includes the adoption of a Domestic Minimum Top-up Tax (DMTT), a supplementary tax mechanism falling under Pillar Two of the OECD’s global tax reform agenda, which seeks to establish a minimum effective tax rate for large multinational corporations worldwide.

In a statement released on Monday, the Ministry explained that the executive regulations are intended to clarify the law’s provisions, define procedures and implementation mechanisms, and enhance transparency in line with internationally recognized standards.

Minister of Finance and Minister of State for Economic Affairs and Investment Noura Al Fassam hailed the regulations as a “major milestone” in Kuwait’s economic reform journey, noting their significance in promoting tax equity and a fairer investment climate.

She emphasized that the legislation reflects Kuwait’s ongoing efforts to reduce its dependency on oil revenues and establish a more diversified and resilient economic model.

New tax to generate KD250m

Preliminary projections estimate that the new tax could generate approximately KD250 million annually, providing a significant boost to the state’s fiscal capabilities.

To support implementation, the Ministry of Finance will organize a series of awareness workshops for stakeholders and regulatory authorities in the coming weeks. Dates for these sessions will be announced soon.

In a related development, the Ministry also issued Ministerial Resolution No. 54/2025, amending regulations on the use of state-owned properties and service fees initially set under Resolution No. 40/2016.

According to Minister Al Fassam, the revised rules aim to strike a balance between public interest and fair access for individuals and institutions using public assets. The amendments cover a range of facilities, including chalets, rest houses, shopping malls, cooperative societies, banks, warehouses, sports clubs, schools, and hospitals.

The new regulations include stabilizing agricultural land prices to support food security and boost local agricultural production, a move the Ministry said was based on comprehensive studies of Gulf and international pricing benchmarks.

Al Fassam added that the revised fees and valuation models remain lower than GCC averages, reflecting Kuwait’s unique social and economic conditions. The goal, she stressed, is to ensure equal opportunities while strengthening the state’s non-oil revenue base in a sustainable and transparent manner.

 - Huda Ata is an independent writer based in the UAE