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May 15, 2026

Ministerial Decision No. 55 of 2025 establishes Kuwait's DMTT framework under Decree-Law No. 157 of 2024. Article 108 details the administrative penalties for non-compliance, specifically focusing on the late payment of tax. It mandates a penalty of 1% of the unpaid tax amount for each 30-day period of delay. The provision clarifies that the penalty applies pro-rata, meaning it is calculated and levied even for delay periods shorter than a full 30 days, ensuring strict enforcement of payment deadlines for MNEs.

CHAPTER 17 - ADMINISTRATIVE FINES AND TAX EVASION

Article 108 - Late Payment Penalty on Tax Due

In accordance with the late payment penalty stipulated in Article 32 of the Law, a penalty of 1% of the value of the unpaid amounts is applied for each 30 days of delay in payment. The aforementioned percentage is calculated even if the periods of delay are less than 30 days.