Kuwait DMTT top-up worked example
How is Kuwait top-up tax computed in practice?
The situation
DMTT tops up the Kuwait jurisdictional ETR to 15%.
The law
- Decree-Law No. 157 of 2024 on the Multinational Entities Group Tax (DMTT): 15% minimum tax for MNE groups with consolidated revenue of EUR 750 million in two of the four prior years, for periods from 1 January 2025
What it means for you
Example: GloBE income KWD 8m, covered taxes KWD 0.4m, ETR 5%, top-up rate 10%. After a KWD 1m substance carve out, top-up = 10% x KWD 7m = KWD 0.7m. Real calculations follow the GloBE rules in detail.
What to do
- Compute GloBE income.
- Compute covered taxes.
- Apply carve out.
- Compute top-up.
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