In a major step toward fiscal reform and economic diversification, the Kuwait Ministry of Finance has issued a landmark decree introducing executive regulations to tax multinational enterprise (MNE) groups. This move reflects Kuwait’s commitment to aligning with international tax standards and reducing reliance on oil revenues.

The newly issued Decree No. 55 of 2025 implements Law No. 157 of 2024, formally aligning Kuwait with the OECD’s Pillar Two global minimum tax framework. It introduces a Domestic Minimum Top-up Tax (DMTT) to ensure that large multinational companies operating in Kuwait pay a fair share of tax in accordance with global norms.

According to the Ministry, the new regulation clarifies legal provisions, outlines implementation mechanisms, and enhances transparency by adhering to international best practices. It is seen as a critical part of Kuwait Vision 2035, which aims to build a more diversified, sustainable, and resilient economy.

Finance Minister and Minister of State for Economic and Investment Affairs, Eng. Nora AlFusam, described the regulation as pivotal for creating a fair investment environment and enhancing tax justice. She noted that annual revenues from the new tax are expected to reach around $820 million, supporting the country’s economic sustainability efforts.

To ensure smooth implementation, the Ministry of Finance will organize a series of awareness workshops to educate stakeholders on the new tax framework and its executive regulations. These sessions aim to promote full understanding and compliance across affected sectors.

The regulation specifically targets large multinational groups operating in Kuwait, aligning with the tax fairness principles set by the Organisation for Economic Co-operation and Development (OECD). This marks a foundational shift in Kuwait’s fiscal policy, reinforcing its role in the global push for transparent and equitable taxation.