Electronic Registration for International Tax Obligations Now Mandatory, Announces Finance Ministry
**Kuwait Introduces E-Registration Service for Multinational Entities Tax Law**
The Ministry of Finance in Kuwait has launched an e-registration service for companies subject to the Multinational Entities Tax Law (METL), as part of its efforts to streamline tax compliance for multinational entities operating in the country. This initiative is a key step towards digital transformation in government services and aligns with the OECD's Pillar Two program to ensure a minimum corporate tax of 15% on profits in each operating country.
**Who is Eligible for the E-Registration Service?**
The e-registration service applies to multinational entities, both Kuwaiti and foreign, that operate in more than one country and have total revenues meeting or exceeding €750 million in the consolidated financial statements of the parent entity for at least two of the four tax periods before FY 2025.
**Deadline for Registration**
All eligible entities must register by September 30, 2025.
**Procedure and Compliance**
The tax return must be signed off by a tax advisor approved by the Ministry of Finance (MOF). The e-registration process is designed to facilitate compliance and reduce administrative burdens for multinational entities by allowing the appointment of a designated entity to handle tax compliance obligations.
**Implementation Updates**
The e-registration service is part of broader efforts to implement the Domestic Minimum Top-up Tax (DMTT), which is in line with the OECD's Pillar Two program. The DMTT Law and its Bylaws provide detailed procedures for tax registration and compliance, with 116 articles that clarify the definition, computation method, compliance process, and administrative matters related to DMTT.
**Future Developments**
Further guidance and updates are expected as the Ministry of Finance continues to refine the implementation of the DMTT Law and its Bylaws. The Ministry reiterates its dedication to developing digital services that boost institutional performance and ensure compliance with Kuwait's tax laws.
**Accessing the E-Registration Service**
The registration process for companies subject to the METL involves four steps. Users can initiate the process by visiting the Ministry of Finance's official website: www.mof.gov.kw. Upon visiting the website, users can select "Corporate and Institutional Tax" from the main menu or access "Electronic Tax Services" to reach the registration service. The link for the service is www.mof.gov.kw/TCRS_Public. Users can log in using an existing account, or create a new one if needed.
The Ministry's statement regarding the e-registration service was reported by Al-Rai daily. The e-registration service is a significant step towards digital transformation in the Ministry's services, aiming to simplify the registration process for companies covered under the METL.
Multinational entities, whether Kuwaiti or foreign, are eligible for the e-registration service if they operate in more than one country, have total revenues exceeding €750 million in the consolidated financial statements of the parent entity for at least two of the four tax periods before FY 2025, and are subject to the Multinational Entities Tax Law (METL). This e-registration service falls under the broader efforts to implement the Domestic Minimum Top-up Tax (DMTT), which aligns with the OECD's Pillar Two program in the realm of finance and business.
