GTL Summary:

Ministerial Decision No. 55 of 2025, implementing Decree-Law No. 157 of 2024, establishes a key anti-avoidance provision in Article 101. This article grants the Tax Administration authority to disregard transactions or arrangements where a principal purpose is tax reduction, deferral, or exemption. The Administration will evaluate the arrangement's genuine commercial or economic rationale, its method of execution, and the consistency between its legal form and economic substance. This rule ensures that tax outcomes align with underlying economic reality, preventing artificial structures designed to circumvent the DMTT.

Document Type: ERS - Executive Regulations
Law: QDMTT Law (Decree-Law no. 157 of 2024)
Decision Number: executive-regulations-55-article-101
Year: 2025
Country: 🇰🇼 Kuwait
Official Name: Article 101 - Anti-tax Avoidance
Last updated at: 2026-02-23 12:13:40 UTC

CHAPTER 15 - TAX AUDIT AND ASSESSMENT

Article 101 - Anti-tax Avoidance

The tax implications of any arrangements or transactions will not be recognized if the principal purpose, or one of the principal purposes, of those arrangements or transactions is to reduce, defer, or exempt from tax.

The Tax Administration may consider the following factors to determine whether such arrangements or transactions, or any parts of them, are for a genuine commercial or economic purpose or merely aimed at reducing, deferring, or exempting from tax:

  1. Methods and circumstances of execution of the arrangements or transactions.

  2. The commercial or economic rationale behind the arrangements or transactions.

  3. The extent of any discrepancies between the form and substance of the agreement or transaction, or the presence of contradictory clauses in the terms of the agreement or transaction that may nullify each other.

  4. Any other factors or circumstances that reveal the true substance and objectives of the arrangements or transactions.

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