On November 15, 2023 issued a press release announcing that Kuwait joined international efforts against tax avoidance by joining the OECD/G20 Inclusive Framework on BEPS.
Through its membership, Kuwait has also committed to addressing the tax challenges arising from the digitalisation of the economy by participating in the Two-Pillar Solution to reform the international taxation rules and ensure that multinational enterprises pay a fair share of tax wherever they operate.
Collaborating on an equal footing with all other members of the Inclusive Framework, Kuwait will participate in the implementation of the BEPS package of 15 measures to tackle tax avoidance, improve the coherence of international tax rules and ensure a more transparent tax environment.
Under Pillar One, which is designed to ensure a fairer distribution of taxing rights among jurisdictions over the largest and most profitable multinational enterprises (MNEs), it is now expected to allocate taxing rights on about USD 200 billion in profits to market jurisdictions annually. This is expected to lead to annual global tax revenue gains of between USD 17‑32 billion, based on 2021 data. Developing country revenue gains are expected to be greater than those in more advanced economies, as a proportion of existing revenues.
Pillar Two introduces a global minimum corporate tax rate set at 15%. The new minimum tax rate will apply to companies with revenue above EUR 750 million and is estimated to result in annual global revenue gains of up to USD 200 billion. Further benefits will also arise from the stabilisation of the international tax system and the increased tax certainty for taxpayers and tax administrations.
As of November 15, 2023 Inclusive Framework on BEPS consists of 145 members. The full list of Members of the Inclusive Framework can be found here.
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