GTL Summary:

Ministerial Decision No. 55 of 2025 establishes Kuwait's DMTT framework under Decree-Law No. 157 of 2024. Article 14 provides a specific election for the Designated Constituent Entity (DCE) concerning the calculation of GloBE Income. It permits treating foreign exchange gains or losses from certain hedging instruments as 'Excluded Equity Gains or Losses'. This elective treatment is conditional: the hedge must cover currency risk in ownership interests, be recognised in Other Comprehensive Income (OCI), and be effective under applicable accounting standards. This binding election is valid for five Tax Periods.

Document Type: ERS - Executive Regulations
Law: QDMTT Law (Decree-Law no. 157 of 2024)
Decision Number: executive-regulations-55-article-14
Year: 2025
Country: 🇰🇼 Kuwait
Official Name: Article 14 - Foreign Exchange Gains or Losses Related to Hedging Instruments
Last updated at: 2026-02-23 12:13:40 UTC

CHAPTER 3 - GLOBE INCOME OR LOSS

Article 14 - Foreign Exchange Gains or Losses Related to Hedging Instruments

When elected by the DCE, the foreign exchange gain or loss related to hedging instruments reflected in the FANIL of a CE located in the State shall be treated as an Excluded Equity Gains or Losses, subject to the following conditions:

  1. Such foreign exchange gains or losses are attributable to hedging instruments that hedge the currency risk in Ownership Interests other than Portfolio Shareholdings.

  2. Such gains or losses are recognized in the Other Comprehensive Income (OCI) statement of the CFS,

  3. The hedging instrument is considered an effective hedge under the Acceptable Financial Accounting Standard or the Authorized Financial Accounting Standard used in the preparation of the Consolidated Financial Statements.

This election is valid for five Tax Periods.

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