GTL Summary:

Ministerial Decision No. 55 of 2025 establishes Kuwait's DMTT framework under Decree-Law No. 157 of 2024. Article 9 specifies the foundational step for computing GloBE Income or Loss, which begins with the financial accounting net income of a Constituent Entity. It mandates adjustments for income allocated to Permanent Establishments and from Flow-through Entities, referencing other articles. The use of standalone financial statements is contingent upon strict conditions, including IFRS compliance, mandatory auditing, and alignment with the UPE's tax period, defaulting to consolidated financial statements otherwise.

Document Type: ERS - Executive Regulations
Law: QDMTT Law (Decree-Law no. 157 of 2024)
Decision Number: executive-regulations-55-article-9
Year: 2025
Country: 🇰🇼 Kuwait
Official Name: Article 9 - Financial Accounts
Last updated at: 2026-02-23 12:13:40 UTC

CHAPTER 3 - GLOBE INCOME OR LOSS

Article 9 - Financial Accounts

The GloBE Income or Loss for each CE is calculated based on the financial accounting net income or loss of that Entity for the Tax Period, after applying the following adjustments:

  1. Adjustments specified in Article 10 of these ERs to determine the GloBE Income or Loss.

  2. Allocation of income or loss between the Main Entity and the PE, in accordance with Article 31 of these ERs.

  3. Allocation of income or loss from a Flow-through Entity, in accordance with Article 32 of these ERs. To apply the above paragraph, all of the following conditions must be met:

    1. All CEs located in the same country within the same MNE Group must have standalone financial statements prepared in accordance with IFRS.

    2. The financial statements must be audited by an audit firm approved by the Ministry in accordance with the Ministerial Decision issued for this purpose.

    3. The accounting period of the financial statements must match the Tax Period of the UPE.

If a CE does not meet the conditions of preceding paragraph, its net financial accounting income or loss will be the net income or loss recorded in the CFS prepared by the UPE, before any intra group consolidation adjustments.

If the conditions of the preceding paragraph are not met, an acceptable or authorized financial accounting standard may be used, in accordance with the Executive Rules and Instructions issued by the Tax Administration.

The provisions of this Article shall be applied separately to JVs and JV Subsidiaries.

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