TaxSavvyKW

DMTT tax card and government retention

We are in an MNE group with a DMTT tax card. Will ministries still retain 5%?

The situation

Under the FY 2026/27 budget rules, the 5% retention no longer applies to Kuwait constituent entities of DMTT registered groups holding a valid DMTT tax card.

The law

  • Executive rules for the FY 2026/2027 State budget: Government bodies keep retaining 5%; DMTT tax card holders are exempt from retention; balances older than five years go to the MOF

What it means for you

Show the valid DMTT tax card to the government entity. Whether private payers must follow the same rule awaited guidance. The effective date was expected around 29 March 2026.

What to do

  1. Get the DMTT tax card.
  2. Share it with government clients.
  3. Check private payers' practice.
  4. Track guidance.

We can do this for you5% tax retention compliance and tax clearance certificate: KWD 600

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