GTL Summary:

Ministerial Decision No. 55 of 2025, implementing Kuwait's DMTT Law, addresses transfer pricing for related persons in Chapter 10. Article 70 specifically defines the concept of 'Control'. Control is established when a person can exercise effective influence over another, evidenced by holding 50% or more of voting rights, board seats, capital, or profits. It also includes managing operations, providing 50% or more of loans (excluding financial institutions), or providing 25% or more of guarantees. This definition is crucial for identifying related-party transactions under the new tax framework.

Document Type: ERS - Executive Regulations
Law: QDMTT Law (Decree-Law no. 157 of 2024)
Decision Number: executive-regulations-55-article-70
Year: 2025
Country: 🇰🇼 Kuwait
Official Name: Article 70 - Control
Last updated at: 2026-02-23 12:13:40 UTC

CHAPTER 10 - TRANSFER PRICING FOR RELATED PERSONS

Article 70 - Control

Control, as referred to in the previous Article, exists in the ability of any Person, alone or with related Persons, to directly or indirectly exercise an effective influence on the decisions or operations of another Person. This includes:

  1. The ability to exercise 50% or more of the voting rights in the other Person.

  2. The ability to determine 50% or more of the board members of the other Person or the right to appoint or terminate directors in the other Person.

  3. Entitlement to benefit from 50% or more of the capital or profits of the other Person.

  4. Manage the other Person or the ability to make decisions or to exercise significant influence over its operations and affairs.

  5. Provide 50% or more of the loans to the other person, excluding loans provided by financial institutions.

Provide 25% or more of the guarantees for the other person, excluding guarantees provided by financial institutions.

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