GTL Summary:

Under Ministerial Decision No. 55 of 2025, which provides the executive regulations for Kuwait's DMTT Law, Article 12 specifies the treatment of dividends for calculating GloBE Income or Loss. It establishes the default rule of excluding dividends and distributions from the Financial Accounting Net Income or Loss (FANIL). However, this exclusion is subject to conditions related to Short-Term Portfolio Shareholdings. A dividend qualifies for exclusion if the MNE Group holds at least a 10% ownership interest or if the interest has been held for 12 months. The Article also introduces a five-year election to include all portfolio dividends in GloBE income.

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

CHAPTER 3 - GLOBE INCOME OR LOSS

Article 12 - Excluded Dividends

The FANIL for each CE is adjusted by excluding any dividends or other distributions received or accrued in respective of a share or an Ownership Interest to determine GloBE Income or Loss, except for:

  1. Short-Term Portfolio Shareholding A dividend from a Short-Term Portfolio Shareholding is considered an excluded dividend if one of the following two criteria is satisfied at the date of distribution:

    1. The MNE Group owns 10% or more of the profits, capital, reserves, or voting rights with respect to an Ownership Interest in the distributing Entity;

    2. The CE has economically owned such Ownership Interest for a minimum period of 12 months.

  2. Ownership Interest in an Investment Entity that is subject to the Taxable Distribution Method Election.

A DCE may elect to allow every CE that is a member of the MNE Group and is located in the State to include all dividend distributions related to Portfolio Shareholdings into its GloBE Income or Loss, regardless of whether it was a Short-Term Portfolio Shareholding.

The election referred to in the preceding paragraph is valid for a duration of five-Tax Periods.

Fast-loading version for search engines - Click here for the interactive version