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DMTT tax card and retention relief

How does a Kuwait DMTT tax card help with the 5% retention?

The situation

Under the FY 2026/27 budget rules, government bodies need not retain 5% from Kuwait constituent entities of DMTT registered groups that hold 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
  • Executive Regulations, Ministerial Resolution No. 55 of 2025 (published 30 June 2025): Registration within 120 days of becoming subject (30 September 2025 for 2025); audited return within 15 months of year end; TP disclosure form with the return

What it means for you

Obtain and share the DMTT tax card with government customers. This frees cash that used to be held until clearance. Private payers' practice awaited guidance.

What to do

  1. Register for DMTT.
  2. Obtain the tax card.
  3. Send it to government clients.
  4. Track private payer practice.

We can do this for youKuwait DMTT scoping, registration and DMTT tax card: KWD 2,500

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