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May 15, 2026

Article 5 establishes the criteria for determining an entity's location for the purposes of Kuwait's Qualified Domestic Minimum Top-Up Tax (QDMTT). An entity is located in a state if it is a non-pass-through entity and a tax resident there. A pass-through entity is located in a state if it is the Ultimate Parent Entity (UPE) of a multinational group and was established there. A permanent establishment is also considered located in a state if it maintains a place of business, as defined under Article 2. The article clarifies that pass-through entities not meeting the UPE criteria and certain permanent establishments are treated as stateless.

Chapter 2 - Taxable and Excluded Entities

Article 5 - Entity Location

A state is considered the location of an entity in any of the following cases:

If the non-pass-through entity is a tax resident in that state.
If the pass-through entity is the ultimate parent entity of a multinational group of entities and was established in the state.
If there is a permanent establishment in the state, where it has a place of business or what is considered a place of business in the state, according to items (1) to (4) of Article 2 of this law. Both the pass-through entity that is not subject to the provisions of item (2) of this Article, and the permanent establishment referred to in the second paragraph of Article 2 of this law, are treated as entities not subject to any state or jurisdiction.