GTL Summary:

Ministerial Decision No. 55 of 2025 establishes Kuwait's DMTT framework under Decree-Law No. 157 of 2024. Article 16 specifically mandates adjustments to the GloBE Income or Loss of a Constituent Entity (CE) to account for asymmetric foreign currency gains or losses. This applies when a CE's functional accounting currency differs from its functional tax currency. The provision details how gains or losses from exchange rate fluctuations between these currencies, or a third currency, must be treated to neutralise valuation mismatches in the GloBE tax base calculation.

Document Type: ERS - Executive Regulations
Law: QDMTT Law (Decree-Law no. 157 of 2024)
Decision Number: executive-regulations-55-article-16
Year: 2025
Country: 🇰🇼 Kuwait
Official Name: Article 16 - Asymmetric Foreign Currency Gains or Losses
Last updated at: 2026-02-23 12:13:40 UTC

CHAPTER 3 - GLOBE INCOME OR LOSS

Article 16 - Asymmetric Foreign Currency Gains or Losses

To determine the GloBE Income or Loss, the FANIL is adjusted for Asymmetric Foreign Currency Gains or Losses of a CE where its Functional Accounting Currency differs from its Functional Tax Currency. These gains or losses include:

  1. Gains or losses 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.

  2. Gains or losses included in the computation of a CE’s FANIL and attributable to fluctuations in the exchange rate between its Tax Functional Currency and its Accounting Functional Currency;

  3. Gains or losses 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

  4. Gains or losses included in the computation of a CE’s FANIL, 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.

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