As part of Kuwait’s efforts to address the tax challenges arising from the digitization of the economy, KPMG in Kuwait will hold its annual Talking Tax conference on January 23.
On November 15, 2023, Kuwait had announced regarding its accession to the comprehensive framework of the Organization for Economic Cooperation and Development (OECD) and the G20 on tax erosion and profit shifting. This international collaboration involves over 140 member countries and is part of Kuwait’s broader efforts to combat tax evasion.
Zubair Patel, Head of the Tax Department at KPMG in Kuwait, commented on this significant development, stating that they perceive this measure as a positive shift towards achieving tax transparency both locally and globally. Kuwait’s participation in implementing the tax erosion and profit transfer package, comprising 15 measures, is expected to enhance the coherence of international tax laws.
In response to Kuwait’s announcement, the Organization for Economic Cooperation and Development confirmed that Kuwait has chosen to adopt the option based on two fundamental pillars. These pillars aim to initiate reforms in tax laws, ensuring that multinational companies fulfill their tax obligations appropriately in the regions where they operate.
As per the agreement, any Kuwaiti multinational company, including government institutions, operating outside Kuwait with annual revenues exceeding 750 million euros (approximately 245 million Kuwaiti dinars), will be subject to a 15% tax on its profits. The implementation of these measures is anticipated to commence from the year 2025 onward.
The post ‘Talking Tax’ KPMG annual conference slated for Jan 23 appeared first on TimesKuwait.
