­­­Kuwait: On 24 December 2024, the Council of Ministers approved the draft legislation for DMTT (Domestic Minimum Top-up Tax) as a measure to help fulfill Kuwait’s commitments to bring about tax reforms and better alignment with global tax standards, which were made under the Inclusive Framework on BEPS (Base Erosion and Profit Shifting). Kuwait had signed the OECD/G20 Inclusive Framework on BEPS on 15 November 2023, joining 140 members countries and jurisdictions, to support global efforts towards tax transparency.

With the implementation effective 1 January 2025, every MNE (multinational enterprise) with a consolidated revenue above EUR750 Million in Kuwait is now subject to pay a minimum 15% tax. As a result of this shift, MNE tax teams are expected to be in the thick of challenges emerging from Pillar 2 legislation, such as requirement of new forms of financial data that they may not currently have access to within their organizations to be compliant with the new rules, lack of understanding of local tax legislation of the jurisdictions they might be operating in, and the need to be updated with the changing laws and regulations, among others.

Therefore, to help the MNEs in Kuwait navigate these transitional times and to simplify the evolving tax landscape, KPMG Kuwait is conducting the 7th edition of its flagship tax event, Talking Tax, which targets MNEs and large businesses in Kuwait that stand to be impacted directly by these tax-related changes.

Talking about the complexities of some of these changes, Zubair Patel, Partner and Head of Tax & Corporate Services, KPMG Kuwait, said:

We have entered a new phase of tax legislation in Kuwait, with media reports indicating nearly 300+ companies[1] getting impacted by these changes. Therefore, it is critical that MNEs act with great urgency and take every tool at their disposal to understand and build for how the changes may impact their business.

Furthermore, any growing organization which may fall under BEPS Pillar 2 obligations in the next 1–2 years must plan ahead to manage the impact in the earlier stages. I believe companies must consider an overhaul in their tax functions, including personnel and automation, to stay updated with the tax environment.

This edition of Talking Tax 2025, scheduled to take place on 15 January 2025, will focus on the new Kuwait DMTT Law and how it links to BEPS Pillar 2 globally, impact of the changes to the Kuwait tax environment, tax technology, Kuwait tax inspection, updates and practices of the Kuwait Tax Authority, and economic updates from Kuwait.

The event will also feature industry leaders to address specific queries around the new laws and their impact on various sectors. Additionally, this edition of Talking Tax will feature a keynote session by Daniel Kaye, Group Chief Economist, National Bank of Kuwait, who will present key economic updates from Kuwait. Following Daniel’s session, Fahim Bashir, Partner — Tax & Corporate Services, KPMG Kuwait, Naveen Bohra, Director — Tax & Corporate Services, KPMG Kuwait, and Jorge Santos Lopes de Sousa, Manager, Pillar 2 Subject Matter Expert, KPMG Germany, will address the new Kuwait DMTT Law and how it relates to the Pillar 2 legislation.

Considering Kuwait’s tax environment is expected to witness significant shifts, Talking Tax 2025 will comprise two insightful panel discussions with panelists from KPMG and some of Kuwait’s most notable organizations. They are: Dr. Rasheed Al-Qenae, Managing Partner, KPMG Kuwait, Sanjay Khetan, Group CFO, Alshaya, Kaizar Shakir, Director and CFO, Gulf Consult, Salman Bin Khaled, Partner — Audit, KPMG Kuwait, Aleem Ullah Azim, Financial Manager, Fouad Alghanim Group of Companies Holding, Kuo Yang, Vice President, Jereh Oil & Gas Engineering Corporation, Heba Nabil A. Abdelrahman, Associate Director — Tax & Corporate Services, KPMG Kuwait, and Omar Ahmad, Associate Director — Tax & Corporate Services, KPMG Kuwait.

The panel discussions will be moderated by Zubair Patel, Partner and Head of Tax & Corporate Services, KPMG Kuwait, and Muhammad Hanan Tariq, Partner — Tax & Corporate Services, KPMG Kuwait.

Like the previous editions, this year’s Talking Tax will continue to serve as a platform that brings together industry experts and KPMG’s tax professionals to offer a clearer picture of how the tax ecosystem is transforming on country and regional levels.

Addressing the intentions behind the tax event, Zubair concluded:

As MNEs prepare for and (or) continue to take on the new tax reality, our aim through Talking Tax 2025, will be to share with them the knowledge and insights necessary to adapt and overcome any related foreseeable tax changes seamlessly.

[1] New 15% tax to affect 350 foreign firms and 20 Kuwaiti companies | arabtimes