GTL Summary:

Ministerial Decision No. 55 of 2025, which implements Kuwait's Domestic Minimum Top-up Tax (DMTT) framework, outlines specific adjustments for calculating the tax base. Article 17 addresses the determination of GloBE Income or Loss for a Constituent Entity (CE). It mandates that the Financial Accounting Net Income or Loss (FANIL) must be adjusted to exclude 'Policy Disallowed Expenses'. These include expenses for payments violating local Kuwaiti laws and any fines or penalties equalling or exceeding EUR 50,000 or its currency equivalent during a tax period.

Document Type: ERS - Executive Regulations
Law: QDMTT Law (Decree-Law no. 157 of 2024)
Decision Number: executive-regulations-55-article-17
Year: 2025
Country: 🇰🇼 Kuwait
Official Name: Article 17 - Illegal Expenses, Fines, and Penalties (Policy Disallowed Expenses)
Last updated at: 2026-02-23 12:13:40 UTC

CHAPTER 3 - GLOBE INCOME OR LOSS

Article 17 - Illegal Expenses, Fines, and Penalties (Policy Disallowed Expenses)

To determine the GLoBE Income or Loss for each CE, the FANIL shall be adjusted to exclude Illegal payments, fines and penalties. Such Illegal payments, fines and penalties shall include, without limitation, the following:

  1. Expenses accrued by a CE for payments in violation of local laws enforced in the State.

  2. Expenses resulting from fines or penalties imposed on the CE when they equal or exceed EUR 50,000, or its equivalent in the functional currency used in calculating the FANIL of the CE during the Tax Period. This paragraph also applies to daily fines that may be levied in respect of the same activity, if their total during the Tax Period meets or exceeds the amount mentioned in this paragraph.

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