GTL Summary:

Article 6 of Decree-Law No. 157 of 2024 establishes the core calculation mechanism for the Multinational Entities (MNEs) Tax in Kuwait. This provision, aligned with the Qualified Domestic Minimum Top-Up Tax (QDMTT) framework, applies when an MNE's effective tax rate (ETR) in the jurisdiction is below the 15% global minimum. The law stipulates that the tax shall be imposed at a rate equal to the difference between this 15% minimum rate and the MNE's actual ETR. This ensures any tax shortfall is collected domestically, preventing the tax liability from being ceded to other jurisdictions.