GTL Summary:

Ministerial Decision No. 55 of 2025 specifies the authorized Transfer Pricing methods for determining Arm's Length Prices. Article 72 lists the standard methods: Comparable Uncontrolled Price (CUP), Resale Price, Cost Plus Margin, Transactional Net Margin (TNMM), and Transactional Profit Split. It permits the use of alternative methods only if standard options are proven inadequate to determine an Arm's Length Price. Taxpayers are strictly required to document the rationale and assumptions justifying their selected pricing methodology.

Document Type: ERS - Executive Regulations
Law: QDMTT Law (Decree-Law no. 157 of 2024)
Decision Number: executive-regulations-55-article-72
Year: 2025
Country: 🇰🇼 Kuwait
Official Name: Article 72 - Transfer Pricing Methods between Related Persons
Last updated at: 2026-02-23 12:13:40 UTC

CHAPTER 10 - TRANSFER PRICING FOR RELATED PERSONS

Article 72 - Transfer Pricing Methods between Related Persons

To apply the Arm’s Length Principle, the Taxpayer must use the most appropriate of the following methods to price transactions with related Persons:

  1. Comparable Uncontrolled Price Method (CUP).

  2. Resale Price Method

  3. Cost Plus Margin Method

  4. Transactional Net Margin Method (TNMM).

  5. Transactional Profit Split Method.

The Taxpayer may use more than one of the mentioned methods or a method other than those mentioned in this Article, if they can prove that none of these methods can determine the Arm’s Length Price, provided that this alternative method would lead to the application of the Arm’s Length Principle.

In all cases, the Taxpayer must determine the reasons and assumptions that were relied on to choose the transfer pricing method.

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