KPMG Kuwait’s annual tax event to focus on Kuwait joining the Inclusive Framework related to BEPS
The event will be themed around the impact of Kuwait joining the OECD/G20 Inclusive Framework on BEPS (Base Erosion and Profit Shifting) and aim to shed more light on the potential changes to corporate income tax in Kuwait.
Kuwait, January 2024: In view of Kuwait’s commitment to address the tax challenges emerging from digitalization of the economy, KPMG in Kuwait will be conducting its annual tax event Talking Tax on 23 January 2024.
On 15 November 2023, Kuwait joined the OECD/G20 Inclusive Framework on BEPS (Inclusive Framework), joining 140+ countries that are already signatories, to strengthen the efforts against tax avoidance.
In its announcement regarding Kuwait joining the Inclusive Framework, the Organisation for Economic Co-operation and Development (OECD) mentioned that Kuwait had agreed to take part in the Two-Pillar Solution to bring about reforms in the tax laws and ensure that multinational enterprises paid their fair share of taxes in the regions they operated.
This change would mean that any Kuwaiti multinational company, including government entities, that are operating outside Kuwait and have an annual revenue greater than 750m euros (~KD 245m) will be subject to 15% tax on their profits in Kuwait. The implementation is expected to be in place 2025 onwards.
As a second phase for 2026, it is anticipated that the Kuwait Government will introduce new legislation in the form of Business Profits Tax Law (BPT Law) whereby all Kuwaiti companies/businesses will be subject to local corporate tax. Kuwait’s current corporate income tax rate stands at 15% and applies only to non-Kuwaiti companies that are earning income of Kuwait source.
Speaking about the Kuwait’s evolving tax ecosystem, Fahim Bashir, Partner — Tax, KPMG in Kuwait, emphasized on the need for businesses to stay on top of the changes that the Kuwait Government may make in terms of the BEPS minimum standards along with the implementation of the BPT Law in Kuwait.
The event will also comprise panel discussions on matters pertaining to tax as well as Kuwait’s economic landscape and include guest speakers: Daniel Kaye, Group Chief Economist, National Bank of Kuwait, Mubeen Khadir, Partner and Head of Tax & Corporate Services, KPMG in Bahrain, and Anand Krishnan, Director — International Tax Services, KPMG in Qatar.
The in-person event will be held at the Four Seasons Hotel, Kuwait City, on 23 January 2024.