We are pleased to welcome you to this Kuwait Tax Guide, designed to serve as a practical resource for anyone seeking to understand the tax landscape in the State of Kuwait.
Our objective is to provide a user‑friendly reference that simplifies complex legislation and brings together, in one place, the key requirements that taxpayers and businesses need to be aware of.
With the introduction of the Domestic Minimum Top‑up Tax (“DMTT”) last year, Kuwait has taken a significant step toward a broader tax transparency framework that aligns with the Organization for Economic Cooperation and Development ("OECD") Base Erosion and Profit Shifting ("BEPS") Pillar II and Global Anti‑Base Erosion (“GloBE”) Rules. At the same time, the legacy corporate income tax regime remains in place where taxpayers do not fall under the scope of the DMTT.
This marks a major evolution in the country’s tax landscape, reflecting Kuwait’s commitment to international tax standards and its efforts to enhance consistency and fairness, within its fiscal system.
Following the implementation of the DMTT Law, Kuwait’s tax ecosystem has witnessed a noticeable shift—both technologically and institutionally. This heightened focus has also led to increased investments in digital tax systems, greater demand for skilled tax professionals, and a more structured approach to tax planning and reporting.
As taxpayers may fall under one regime or the other, understanding the distinction between the two frameworks is essential to ensuring accurate compliance and informed decision‑making.
While further Executive Rules from the Kuwait Tax Authority (“KTA”) are expected to provide additional clarity on procedural and computational matters, we have summarized the legislation currently in force and highlighted the considerations for stakeholders.
We trust that this publication will serve as a practical resource as you navigate Kuwait’s evolving tax environment.
