Executive Regulations to the DMTT Law

CHAPTER 1 - PRELIMINARY PROVISIONS

Article 1 - Definitions

For the purposes of applying the provisions of these ERs, the following terms and phrases shall be defined as follows:

The State	:	The State of Kuwait and its rights in the Divided Zone and the Divided Submerged Zone, which contains common natural wealth or resources that are distributed equally between the State of Kuwait and the Kingdom of Saudi Arabia, per the boundaries and coordinates established in the agreements and memorandum of understanding concluded between both countries in this regard.
The Ministry	:	The Ministry of Finance (MOF).
The Minister	:	The Minister of Finance.
The Law	:	Tax Law on Multinational Enterprises (MNEs) Group Issued by Decree-Law No. 157 of 2024 (DMTT Law).
Tax Administration	:	The competent authority responsible for implementing tax laws.
Tax	:	Top-Up Tax on MNE Group, levied as per the provisions of this DMTT Law.
Multinational Enterprise Group (MNE Group)	:	Any Group that has presence, even through a permanent establishment (PE), in more than one state or Jurisdiction of which The State is one of them, and whose total revenue exceeds the Revenue Threshold.
Revenue Threshold	:	The annual revenue of the MNE Group that is equal to or exceeding €750 million in the Consolidated Financial Statements (CFS) of the UPE for at least two Tax Periods within the four Tax Periods immediately preceding the Tax Period. The CFS shall include all revenue generated by Constituent Entities (CE) under control, including revenue from excluded Entities, which are taken into consideration when determining whether the Revenue Threshold is met.
Group	:	All that takes one of the following two forms: Entities related through ownership or control provided that the assets, liabilities, income, expenses and cash flows of such Entities are included in the CFS of the UPE, or excluded from it due to its size, material importance, or that the Related Entities are held for sale. An Entity located in a state or jurisdiction and has one or more permanent establishments located in other states or jurisdictions provided that such Entity is not part of the Related Entities referred to in clause 1.
Entity	:	includes the following: Companies Any agreement that does not take any of the forms of a company, wherein the Persons involved are accountable for the obligations arising from such agreements. Any authority, public institution, fund, or any legal person.
Resident Entity	:	An Entity in respect of which any of the following two conditions exist: If it is established in the State. If the main or the effective place of management is in The State.
Parent Entity	:	includes either of the following cases: The Ultimate Parent Entity (UPE). Any CE that is not considered a UPE, a Partially Owned Parent Entity, a PE, or an Investment Entity, and directly or indirectly has Ownership Interests in another Entity in the same MNE Group.
Ultimate Parent Entity (UPE)	:	An Entity within an MNE Group that directly or indirectly holds Controlling Interest(s) in another Entity or Entities and is not controlled by any other entity in or outside the group, or the Main Entity that is not part of any other Group, except for sovereign funds.
Constituent Entity (CE)	:	Any of the following is considered a CE: Any Entity that is a member of a MNE Group, with the exception of the excluded Entities mentioned in Article 5 of these ERs. Any PE of a Main Entity. Such PE shall be treated as separate from the Main Entity and any other PE of that Main Entity.
Main Entity	:	A CE in the Group that has PE(s) and whose financial statements include income or loss of its PE.
JV (JV) Subsidiary	:	An Entity whose assets, liabilities, revenues, expenses, and cash flows are consolidated in the financial statements of the Joint Venture (JV) under an Acceptable Financial Accounting Standard (or would be consolidated if required by the Acceptable Financial Accounting Standard). A permanent establishment whose Main Entity is a JV (or a JV subsidiary) must be treated as a separate JV Subsidiary.
JV Group	:	The JV and its JV Subsidiaries.
Stateless Entity	:	An Entity that is considered a PE under paragraph two of Article 2 of the DMTT Law, or a Flow-Through Entity that is not regarded as a UPE.
Flow-through Entity	:	An Entity through which its income, expenditure, profits, and losses flow to its owners or investors, and which is not a tax resident in the country or Jurisdiction in which it was established.
Minority-Owned Constituent Entity (MOCE)	:	A CE in a MNE Group in which the UPE holds a Controlling Interest of 30% or less.
Investment Entity	:	Includes any of the following: An Investment Fund or Real Estate Investment Vehicle. An Entity that is at least 95% owned directly by an Investment Fund or Real Estate Investment Vehicle and that operates exclusively or almost exclusively to hold assets or invest funds for the benefit of such Investment Entities. An Entity where at least 85% of the value of the Entity is owned by an Investment Fund or Real Estate Investment Vehicle, provided that the Entity's income consists of Excluded Dividends or Excluded Equity Gains that are excluded from the computation of GloBE Income.
Investment Fund	:	An Entity that meets all of the following criteria: It is designed to pool assets from a number of investors, some of which are not connected. It invests according to a defined investment policy. It allows investors to reduce transaction, research and analysis costs, or spread risk collectively. It is designed to generate investment income or gains, or protection against a particular or general event. It generates for the investors a return from the assets of the fund or income earned on those assets, based on the contributions made by those investors. It is subject to the laws of the country or jurisdiction in which it is established or managed. It is managed by investment fund management professionals on behalf of the investors.
Pension Services Entity	:	An Entity established and operated exclusively or almost exclusively for any of the following purposes: To invest funds on behalf of a Pension Fund, whether inside the State or any other Jurisdiction. To carry out activities that are ancillary to those regulated activities carried out by the Pension Fund, provided that this Entity is a member of the same MNE Group to which the Pension Fund belongs.
Real Estate Investment Vehicle	:	An Entity owned by more than one investor, owns immovable property, and is subject to a single level of taxation, either at the Entity level or at the level of its interest holders, whose tax payment cannot be deferred for more than one year.
Pension Fund	:	Means each of the following: an Entity that is established and operated in a jurisdiction exclusively or almost exclusively to administer or provide retirement benefits and ancillary or incidental benefits to individuals, and which satisfies any of the following: It is regulated and supervised by that country, jurisdiction, one of its political subdivisions, or local authorities. Those benefits are guaranteed or secured under local legislation. A Pension Service Entity.
Related Entities	:	Entities that are connected by a common relationship with each other or with another Entity, or an Entity that has significant influence or control over the other Entity , or two or more Entities under common control.
Activity	:	Any trade in goods, services, manufacturing, profession, craftsmanship, agency, brokerage, real estate development, exploiting movable and immovable properties, speculation, or any activity with a commercial or investment nature.
Taxpayer	:	The Group of Entities subject to The Tax (Top-Up Tax) according to the provisions of Article 4 of these ERs.
Tax Due	:	The Tax (Top-Up Tax) payable under this DMTT Law, whether declared by the Taxpayer in the Tax Return or calculated based on the Tax Assessment.
Minimum Tax	:	Effective Tax Rate (ETR) of (15%).
Covered Taxes	:	The taxes recorded in the financial accounts of an Entity in respect to its income or profits or its share of the income or profits of an Entity in which it has an Ownership Interest, which is paid to The State or any other state or jurisdiction. The Tax (Top-Up Tax) is not considered a Covered Tax.
Adjusted Covered Taxes	:	The Covered Taxes based on tax expenses calculated on an accrual basis, or losses, recorded in the Taxpayer’s financial statements during the Tax Period, along with any adjustments applied to it, in accordance with Article 34 of these ERs.
Tax Return	:	Data and information to be disclosed by the Taxpayer for the Tax Period for the purposes of the Tax imposed under the provisions of the Law and these ERs, in accordance with the forms prepared by the Tax Department.
Tax Assessment	:	Determining the value of the Tax (Top-Up Tax) Due that should be paid and the basis of its calculation or estimation.
Tax Liability	:	The Tax due including any imposed penalties in accordance with the Law and these ERs.
Pillar Two	:	A global measure within Base Erosion and Profit Shifting Project issued by the Organization for Economic Cooperation and Development (OECD), which provides for a Minimum Tax rate on the MNE Group.
Income Inclusion Rule (IIR)	:	A charging mechanism defined by Pillar Two to give the state or Jurisdiction where the UPE is located, the right to collect any difference in taxes that is less than the Minimum Tax paid by the CE in other states or Jurisdictions, to the extent of its Ownership Interest in those CEs.
Jurisdiction	:	A political entity or area that has a set of laws subject to a judicial system or administrated by governmental authorities, such as a country, kingdom, emirate, territory, province, or others.
Tax Registration	:	A mechanism by which the Taxpayer or Designated Constituent Entity registers with the Tax Administration for tax purposes.
Tax Registration Number	:	Identification number issued by the Tax Administration to any Person registered for tax purposes.
Registered Person	:	Any Person that has been tax registered and issued a Tax Registration Number.
Taxable Entities	:	The Entities specified in Article 4 of these ERs.
Person	:	A natural or legal person.
Executive Rules and Instructions	:	Decisions, rules, and instructions issued by the Tax Administration concerning the implementation of the provisions of the DMTT Law and its ERs, which is considered binding on Taxpayers and all those dealing with the Tax Administration.
Master File	:	A comprehensive document defined by the OECD that provides an overview of the global business operations of an MNE Group, along with the supply chain, organizational structure, intangible assets, financial arrangements, and transfer pricing policies. The Master File also contains general information in relation to the Group and is usually prepared at the Group level. Its purpose is to provide Tax Administration a clear understanding of the MNE group's global activities and its transfer pricing policies.
Local File	:	The Local File is a standardized document as defined by the OECD, which provides comprehensive information regarding locally controlled transactions. This includes a comparability analysis and the selection and application of the most suitable transfer pricing method. The Local File serves to complement the Master File and ensures that the Taxable Entity adheres to the Arm's Length Principle.
Designated Constituent Entity (DCE)	:	The Entity designated to represent the Taxpayer in front the Tax Administration and is responsible for Tax Registration, filing returns and records, settlement of taxes and penalties, and fulfilling all other tax obligations.
Departing Constituent Entity	:	A CE subject to the election that exits the MNE Group or transfers all of its assets to a Person who is not a CE of the same MNE Group located in the same state.
Non-Resident Entity	:	Any Entity that is not considered a Resident Entity.
Qualified Ownership Interests	:	Any equity interests that carries rights to the profits, capital or reserves of an Entity, including the profits, capital or reserves of a Main Entity's PE(s) and that meet the following conditions: Must be treated as equity according to the Acceptable Financial Accounting Standards in the state where the Entity is located and must be transferable or sellable. Must be capable of generating Qualified Tax Credit, such as Qualified Refundable Tax Credits (QRTC), in accordance with defined standards. Must not be considered a debt instrument or loan but must represent a genuine equity investment.
Deemed Distributions	:	Situations in which an Ownership Interest is treated as an equity interest for the purposes of the Law and these ERs in the State, as well as for accounting purposes.
Qualified Country-by-Country Report (CbCR)	:	Reports that are prepared and submitted based on Qualified Financial Statements.
Accrual Basis Accounting	:	An accounting method where the Taxpayer recognizes revenue when it is earned and expenditures or costs when they are incurred.
Acceptable Financial Accounting Standards	:	International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) in Australia, Brazil, Canada, EU member states, EEA member states, Hong Kong (China), Japan, Mexico, New Zealand, the People's Republic of China, the Republic of India, the Republic of Korea, Russia, Singapore, Switzerland, the United Kingdom, and the United States of America.
Authorized Financial Accounting Standard in the State	:	International Financial Reporting Standards (IFRS), which are considered the accepted accounting principles in the State.
Additional Current Top-Up Tax	:	A Tax (Top-Up Tax) amount due resulting from adjustments in Covered Taxes or the GloBE Income.
Election for a Tax Period	:	An election made by the Designated Constituent Entity, the effect of which is limited to the Tax Period in which the election is made and does not extend to subsequent Tax Periods.
Allocated Asset Gain	:	the adjusted asset gain that is allocated to a Tax Period in the lookback period in accordance with Article 25 of the ER.
Arm's Length Price	:	The price set for a transaction, agreement, or commercial arrangement in accordance with the Arm's Length Principle.
Arm's Length Principle	:	The principle that mandates transactions, agreements, or commercial arrangements between related persons to be recorded under the same terms that would apply between unrelated persons in comparable transactions or agreements under similar conditions.
Asymmetric Foreign Currency Gains or Losses	:	Foreign currency gains or losses for an Entity whose Accounting and Tax Functional Currencies are different, and that meet any of the following: Included in the computation of a CE's taxable income or loss and attributable to fluctuations in the exchange rate between its Accounting Functional Currency and its Tax functional currency; Included in the computation of a CE's Financial Accounting Net Income or Loss (FANIL) and attributable to fluctuations in the exchange rate between its Tax Functional Currency and its Accounting Functional Currency; Included in the computation of a CE's FANIL and attributable to fluctuations in the exchange rate between a Third Foreign Currency and its Accounting Functional Currency; and Attributable to fluctuations in the exchange rate between a Third Foreign Currency and its tax functional currency, whether or not such foreign currency gain or loss is included in taxable income.
Tax Functional Currency	:	The functional currency used to determine the taxable income or loss of a CE with respect to Covered Taxes in the jurisdiction in which the Entity is located.
Accounting Functional Currency	:	The functional currency used to determine the FANIL of the CE.
Third Foreign Currency	:	Any other currency used by the CE that is neither the Functional Tax Currency nor the Functional Accounting Currency.
Authorized Accounting Body	:	The body with legal authority in a jurisdiction to prescribe, establish, or accept accounting standards for financial reporting purposes.
GloBE Income or Loss	:	The Financial Accounting Net Income or Loss adjusted as per the provisions of Chapter Three of these ERs. For the purposes of applying the provisions of these ERs, GloBE Income, wherever it appears, shall be considered synonymous with the term used in the DMTT Law: "Net Income or Loss."
Beneficial Owner	:	The Person who has the right to either enjoy the benefits and to dispose of the dividend distributions, without any contractual or legal obligation to transfer those amounts to another Person.
Consolidated Financial Statements (CFS)	:	Includes the following: The FSs prepared by an Entity in accordance with an Acceptable Financial Accounting Standard, in which the assets, liabilities, income, expenses and cash flows of that Entity and the Entities in which it has a Controlling Interest are presented as those of a single economic unit; Where an Entity meets the definition of a MNE Group as per these ERs, the Entity's financial statements that are prepared in accordance with the Acceptable Financial Accounting Standard. Where the UPE has financial statements described in clauses 1 or 2 that are not prepared in accordance with an Acceptable Financial Accounting Standard, the financial statements are those that have been prepared in accordance with another Acceptable Financial Accounting Standard, and subject to adjustments to prevent any Material Competitive Distortions. Where the UPE does not prepare financial statements described in the paragraphs above, the CFS of the UPE are those that would have been prepared if such Entity were required to prepare such statements in accordance with a law, regulation, or the Authorized Financial Accounting Standard that is either an Acceptable Financial Accounting Standard or another financial accounting standard that is adjusted to prevent any material competitive distortions.
Constituent Entity-Owner	:	A CE that directly or indirectly owns an ownership interest in another CE of the same MNE Group.
Controlled Foreign Company (CFC) Tax Regime	:	A set of tax rules (other than an IIR) under which a direct or indirect shareholder of a foreign Entity (the CFC) is subject to current taxation on its share of part, or all of the income earned by the CFC, irrespective of whether that income is distributed currently to the shareholder.
Controlling Interest	:	An Ownership Interest in an Entity, with respect to which any of the following conditions are met: It is required to consolidate the assets, liabilities, income, expenses and cash flows of the Entity on a line-by-line basis in accordance with an Acceptable Financial Accounting Standard. It would have been required to consolidate the assets, liabilities, income, expenses and cash flows of the Entity on a line-by-line basis if the interest holder had prepared Consolidated Financial Statements. The Main Entity is considered the holder of the Controlling Interest in its PEs.
Deemed Consolidation Test	:	The preparation of CFSs in cases where the UPE does not prepare FSs in accordance with clauses (1), (2), and (4) of the definition of CFS. The CFSs prepared based on the Deemed Consolidation Test are based on the common control principle and are used for applying the Revenue Threshold Test set out in Article 3 of these ERs.
Disqualified Refundable Imputation Tax	:	Any tax amount, other than a Qualified Refundable Imputation Tax, that is due or paid by a CE, and meets any of the following conditions: Refundable to the beneficial owner of a dividend distributed by such CE in respect of that dividend or creditable by the beneficial owner against a tax liability other than a tax liability in respect of such dividend. Refundable to the distributing corporation upon distribution of a dividend.
Taxable Income	:	The income calculated in accordance with the computation method set out in Article 42 of these ERs.
Excluded Dividends	:	Dividends or other distributions received or accrued in respect of an Ownership Interest, except for the following: Short-term Portfolio Shareholdings. An Ownership interest in an Investment Entity that is subject to an election under Article 58 of these ERs.
Excluded Equity Gain or Loss	:	Gain, profit, or loss included in the Financial Accounting Net Income or Loss of a CE arising from: Gains or losses resulting from changes in the fair value of the Ownership Interest, except for a Portfolio Shareholding. Profit or loss in respect of an Ownership Interest included under the equity method of accounting. Gains and losses from disposition of an Ownership Interest, except for a disposition of a Portfolio Shareholding.
Financial Accounting Net Income or Loss (FANIL)	:	Net profit or loss of a CE (before any consolidation adjustments eliminating intra-group transactions) prepared under the Acceptable Financial Accounting Standard in the State. For the purposes of applying these ERs, this term is considered synonymous with the term "Income or Loss" used in the DMTT Law.
Tax Period	:	An accounting period with respect to which the UPE of the MNE Group prepares its CFSs, with the exception for the CFSs defined in Clause (4) of the definition of CFSs, where Tax Period means the calendar year.
Five-Tax Period Election	:	An election made by a DCE with respect to a Tax Period (the election period), that is applicable starting from the election period and the four succeeding Tax Periods and that cannot be revoked till this period lapses. If a Five-Tax Period Election is revoked with respect to a Tax Period (the revocation period), a new election cannot be made with respect to the four Tax Periods succeeding the revocation year.
GloBE Implementation Framework	:	The procedures to be developed by the OECD/G20’s Inclusive Framework on BEPS in order to develop administrative rules, guidance, and procedures that will facilitate the coordinated and effective implementation of the Pillar Two Rules.
GloBE Information Return (GIR)	:	The standardized return to be prepared by the UPE located in the State.
GloBE Loss DTA	:	A deferred tax asset (DTA) calculated according to the formula in Article 39 of these ERs.
GloBE Loss Election	:	The loss election available to the DCE, as provided under Article 39 of these ERs.
GloBE Rules/Pillar Two	:	The set of model rules on Base Erosion and Profit Shifting (Pillar Two) developed by the OECD Inclusive Framework, including any subsequent amendments.
GloBE Safe Harbor	:	The exceptions provided in Chapter Eight of these ERs, intended to facilitate compliance by MNEs and streamline administration by Tax Administration. The conditions under which the CEs of the MNE in a Jurisdiction are eligible to the GloBE Safe Harbor will be established in accordance with a common and agreed process to be defined as part of the work undertaken by the Inclusive Framework on BEPS to develop the GloBE Implementation Framework (Pillar Two) and G20.
Hybrid Entity	:	An Entity that is treated as a separate taxable person for income tax purposes in the Jurisdiction where it is located with respect to its income, expenditure, profit or loss to the extent that it is tax (i.e., fiscally) transparent in the Jurisdiction in which its owner is located.
Included Revaluation Method Gains or Losses	:	Net gains or losses as defined under Article 15 of these ERs.
Insurance Investment Entity	:	means an Entity that would meet the definition of an Investment Fund or a Real Estate Investment Vehicle except that it is established in relation to liabilities under an insurance or annuity contract and is wholly owned by an Entity that is subject to regulation in its location as an insurance company.
Intermediate Parent Entity (IPE)	:	A CE, other than the UPE, Partially Owned Parent Entity, PE, or Investment Entity, that owns (directly or indirectly) an Ownership Interest in another CE within the same MNE Group.
International Organization	:	Any intergovernmental organization (including a supranational organization) or wholly-owned agency or instrumentality owned by governments that meets all of the criteria set out in the following clauses: It is comprised primarily of governments; It has in effect a headquarters or substantially similar agreements [for example, arrangements that entitle the organization’s offices or establishments in the jurisdiction (e.g. a subdivision, or a local, or regional office) to privileges and immunities] with the jurisdiction in which it is established; and The legislation in force prevents its income inuring to the benefit of private persons.
Local Tangible Assets	:	Immovable property located in the same State as the CE.
Marketable Transferable Tax Credits	:	A tax credit that can be used by the holder of the credit to reduce its liability for a Covered Tax in the jurisdiction that issued the tax credit and that meets the legal transferability standard and the marketability standard in the hands of holder.
Material Competitive Distortion	:	An application that results in an aggregate variation greater than EUR 75 million (or its equivalent in Kuwaiti Dinar) in a Tax Period as compared to the amount that would have been determined by applying the corresponding IFRS principle or procedure. Where the application of a specific principle or procedure results in a Material Competitive Distortion, the accounting treatment of any item or transaction subject to that principle or procedure must be adjusted to conform to the treatment required for the item or transaction under IFRS in accordance with any Agreed Administrative Guidance.
Minority-Owned Parent Entity	:	A Minority-Owned CE that holds, directly or indirectly, the Controlling Interests of another Minority-Owned CE, except where the Controlling Interests of the first-mentioned Entity are held, directly or indirectly, by another Minority-Owned CE.
Minority-Owned Subgroup	:	The Minority-Owned Parent Entity and the Minority-Owned Subsidiaries.
Minority-Owned Subsidiary	:	A Minority-Owned Constituent Entity whose Controlling Interests are held, directly or indirectly, by a Minority-Owned Parent Entity.
MNE Group's Allocable Share of the Investment Entity's GloBE Income	:	The Allocable Share of the Investment Entity's GloBE Income or Loss that would be determined for the UPE, taking into account only interests that are not subject to an election under Articles 57 or 58 of these ERs.
Net Book Value (NBV) of Tangible Assets	:	The average of the beginning and end values of Tangible Assets after taking into account accumulated depreciation, depletion, and impairment, as recorded in the FS.
Non-Marketable Transferable Tax Credit	:	A tax credit that: If held by the Originator, is transferable but is not a Marketable Transferable Tax Credit. If held by a purchaser, is not a Marketable Transferable Tax Credit.
Disqualified Refundable Tax Credit	:	A tax credit that is not a Qualified Refundable Tax Credit but that is refundable in whole or in part.
OECD Model Tax Convention	:	The OECD (2017), Model Tax Convention on Income and on Capital.
Other Comprehensive Income	:	Items of income and expense that are not recognized in profit or loss as required or permitted by the Authorized Financial Accounting Standard used in the CFSs. Other Comprehensive Income is usually reported as an adjustment to equity in the statement of financial position.
Ownership Interests	:	Equity interests that carry rights to the profits, capital or reserves of an Entity, including the profits, capital or reserves of a Main Entity's PEs.
Partially Owned Parent Entity (POPE)	:	A CE, other than the UPE, PE, or Investment Entity, that meets both of the following conditions: Owns (directly or indirectly) an Ownership Interest in another CE of the same MNE Group. Has more than 20% of the Ownership Interests in its profits held directly or indirectly by Persons that are not CEs of the MNE Group.
Passive Income	:	Income included in the GloBE Income, including any of the following types: Dividends or dividend equivalents. Interest or interest equivalents. Rent. Royalties. Annuity. Net gains from assets producing any of the income types listed in points (1) to (5), but only to the extent a Constituent Entity-owner is subject to tax on such income under a CFC Tax Regime or as a result of an Ownership Interest in a Hybrid Entity.
Portfolio Shareholding	:	Ownership Interests in an Entity that are held by the MNE Group and that carry rights to less than 10% of the profits, capital, reserves, or voting rights of that Entity at the date of the distribution or disposition.
Qualified Refundable Tax Credit	:	A refundable tax credit designed in a way that it must be paid as cash or provided as a cash equivalent within four years from when a CE meets the eligibility criteria for the tax credit under the laws of the state granting the credit.
Partially Refundable Tax Credit	:	A qualified tax credit that is refundable in part to the extent it must be paid as cash or available as cash equivalents within four years from when a Constituent Entity satisfies the conditions for receiving the credit under the laws of the jurisdiction granting the credit. A Qualified Refundable Tax Credit does not include any amount of tax creditable or refundable pursuant to a Qualified Imputation Tax or a Disqualified Refundable Imputation Tax.
Qualified Competent Authority Agreement	:	Any bilateral or multilateral agreement between competent authorities that provides for the automatic exchange of annual GIRs.
Real Estate Investment Vehicle	:	An Entity owned by more than one investor, owns immovable property, and is subject to a single level of taxation, either at the Entity level or at the level of its interest holders, whose tax payment cannot be deferred for more than one year.
Reverse Hybrid Entity	:	An Entity that is a flow-through entity with respect to income, expenditures, profits, or losses, to the extent that it is not fiscally transparent in the Jurisdiction where the owner is located.
Short-Term Portfolio Shareholding	:	A Portfolio Shareholding that has been economically held by the CE that receives or accrues the dividends or other distributions for less than one year at the date of the distribution.
Sovereign Wealth Fund (SWF)	:	An Investment Fund owned by a national government or managed on its behalf, with the objective of investing in financial assets, including stocks, bonds, and other financial instruments, as well as other assets such as foreign currencies, real estate, and precious metals.
Transparent Entity	:	An Entity not subject to tax in the state where it is established, but rather the tax is levied directly on the owners or partners of the Entity, in accordance to their share or right in the profits.
Tax Treaty	:	The agreement signed between the State of Kuwait and any other state for the avoidance of double taxation with respect to taxes on income and on capital.
Disqualified Refundable Imputation Tax	:	Any amount of tax, other than a Qualified Imputation Tax, accrued or paid by a CE that is: Refundable to the Beneficial Owner of a dividend distributed by such CE in respect of that dividend or creditable by the Beneficial Owner against a Tax Liability other than a Tax Liability in respect of such dividend; or Refundable to the distributing corporation upon distribution of a dividend.