KPMG Kuwait wraps third annual tax event, offering in-depth insight into BEPS and the proposed CIT in the country
The event, Talking Tax, underlined the impact of Kuwait joining 140+ signatories in the OECD/G20 Inclusive Framework on BEPS (Base Erosion and Profit Shifting) and saw participation from Kuwaiti MNCs, family business groups, government authorities, delegates from foreign embassies and business councils, and international clients.
Kuwait, January 2024: KPMG Kuwait’s annual tax seminar Talking Tax came to a close after an eventful showing at the Four Seasons Hotel, Kuwait City. The event was announced soon after Kuwait joined the OECD/G20 Inclusive Framework on BEPS, anticipating key shifts in the country’s tax landscape, to support businesses in Kuwait.
Dr. Rasheed Al-Qenae, Chairman of the KPMG Middle East, South Asia, and Caspian (MESAC) region and Managing Partner, KPMG Kuwait, kicked-off the event by acknowledging the significance of the step and welcoming the guests.
Kuwait joining the OECD/G20 Inclusive Framework on BEPS is a positive step toward achieving tax transparency. I would like to thank H.E. Mr. Ngo Toan Thang, Ambassador of the Socialist Republic of Viet Nam, and Mr. Nguyen Huu Duc, Attaché, Embassy of the Socialist Republic of Viet Nam, Ms. Anchita Kethwas, Second Secretary, Embassy of India, Kuwait, and Mr. Hu Hanming, Counsellor, and Mr. Wu Donghu, Economic and Commercial Affairs, Embassy of the People's Republic of China in the State of Kuwait. I am also thankful to the representatives of the Kuwait Direct Investment Promotion Authority (KDIPA), the Ministry of Finance (MoF), the German Business Council of Kuwait, and the French Business Council of Kuwait for taking the time to attend our event.
The primary goal of the event was to bring out the impact of Kuwait joining the OECD/G20 Inclusive Framework on BEPS and shed light on the potential changes to corporate income tax (CIT)/Business Profit Tax (BPT) in the country.
Zubair Patel, Head of Tax Steering group in KPMG Middle East, South Asia, and the Caspian (MESAC) region and Head of Tax & Corporate Services, KPMG in Kuwait, followed in after Dr. Rasheed and provided critical regional updates with respect to CIT, BEPS, transfer pricing and contract reporting.
I believe, 2024 will pave the path for tax transparency and prove to be a critical year with regards to Kuwait’s tax landscape. In the recent years gone by, we have seen substantial changes in the GCC tax landscape with Saudi Arabia, the UAE, and Qatar reflecting increased alignment with the Organisation for Economic Co-operation and Development (OECD) principles. So, Kuwait signing the Inclusive Framework on BEPS is a transition to align with recent global and regional tax legislation and will open a new chapter for the tax ecosystem in the country,” he said, speaking about the outlook of Kuwait’s tax landscape.
During his session, guest speaker, Daniel Kaye, Group Chief Economist, National Bank of Kuwait (NBK), laid out an economic outlook covering an international summary, overview of the global oil market, and Kuwait’s economy and outlook.
The subsequent sessions focused on the Impact of BEPS and Pillar 2, and the Business Profit Law in Kuwait. They were facilitated by Anand Krishnan, Director – International Tax Services, KPMG in Qatar and Naveen Bohra, Director – Tax & Corporate Services, KPMG in Kuwait, and Mubeen Khadir, Partner and Head of Tax & Corporate Services, KPMG in Bahrain and Fahim Bashir, Partner – Tax & Corporate Services, KPMG in Kuwait, respectively.
In his session, Fahim Bashir called attention to why organizations must take a proactive approach to deal with the upcoming changes in the tax landscape.
Companies can start by performing an impact assessment to evaluate at high-level implications to shareholders' returns. They can then review the way their finance functions are structured to understand how they can incorporate tax responsibilities and accountability. Finally, they need to consider factoring in 15% tax in their business models.
One of the highlights of the event was the insightful panel discussion on Kuwait Tax Landscape, comprising Mussab Ahmed, Group Controller and Treasurer, Alghanim Industries, David Li Guang, Director of Finance, China Gezhouba Group Company (CGGC), Heba Abd El Rahman, Senior Manager, Tax & Corporate Services, KPMG in Kuwait, and Omar Ahmad, Senior Manager, Tax & Corporate Services, KPMG in Kuwait. The discussion was moderated by Hanan Tariq – Director Tax & Corporate Services, KPMG in Kuwait.
Owing to the efforts of the China Business Desk, the event saw notable attendance from multiple Chinese companies, adding to the total of nearly 150 participants.
The event was the third installment of Talking Tax, put together by KPMG Kuwait's Tax team, which is one of the largest on-ground teams in Kuwait and has been supporting clients across sectors with their tax compliances requirements for over 15 years.
