GTL Summary:

Ministerial Decision No. 55 of 2025 establishes Kuwait's DMTT framework under Decree-Law No. 157 of 2024. Article 18 outlines the procedure for adjusting GloBE Income or Loss for prior period errors and changes in accounting principles. It mandates that the Financial Accounting Net Income or Loss (FANIL) of a Constituent Entity be adjusted for corrections or policy changes impacting its opening equity. This ensures historical inaccuracies are rectified in the current tax period's calculation. Notably, this provision excludes error corrections resulting in a covered tax decrease of EUR 1 million or more.

Document Type: ERS - Executive Regulations
Law: QDMTT Law (Decree-Law no. 157 of 2024)
Decision Number: executive-regulations-55-article-18
Year: 2025
Country: 🇰🇼 Kuwait
Official Name: Article 18 - Prior Tax Period Errors and Changes in Accounting Principles
Last updated at: 2026-02-23 12:13:40 UTC

CHAPTER 3 - GLOBE INCOME OR LOSS

Article 18 - Prior Tax Period Errors and Changes in Accounting Principles

To determine the GloBE Income or Loss, the FANIL is adjusted for each CE by any amounts resulting from Prior Tax Period Errors and Changes in Accounting Principles, which are changes in the opening equity at the beginning of the Tax Period of a CE attributable to any of the following:

  1. Correction of an error in determining FANIL in a previous Tax Period that affected the income or expenses includible in the computation of GloBE Income or Loss for such Tax Period.

  2. A change in accounting principle or policy that affects income or expenses includible in the computation of GloBE Income or Loss.

This Article does not apply to any error correction that results in a corresponding decrease of covered taxes from a prior Tax Period by an amount equal to or greater than EUR 1 million (or its equivalent in Kuwaiti Dinars).

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