When determining the ETR in the State during a transitional period and for each subsequent Tax Period, an MNE Group must take into account all DTAs and DTLs disclosed or included in the financial accounts of all CEs in the State during the transitional period. These DTAs and DTLs shall be taken into account at an amount equivalent to the lower of the minimum tax rate or the applicable domestic income tax rate. A DTA recognized at a rate lower than the minimum tax rate may be considered at the minimum tax rate, if the Taxpayer can prove that the DTA is attributable to GloBE loss, considering the following:
The impact of any adjustments resulting from revaluation or changes in accounting recognition related to DTAs shall not be considered.
The amounts related to the following laws shall not be considered as DTAs or DTLs for the purpose of clause (1):
Decree No. 3 of 1955 on Kuwait Income Tax and the amending laws thereof.
Law No. 23 of 1961 on income tax in the “Designated Area.”
Law No. 19 of 2000 on the Supporting and Encouraging National Employment to Work in Non-Governmental Entities, as amended by Law No. 32 of 2003,
Law No. 46 of 2006 regarding Zakat and the contribution of public and closed joint stock companies to the State budget.
DTAs arising from items excluded from the calculation of GloBE income or loss as per Chapter Three of the calculation process mentioned in paragraph 1 of this Article shall be excluded, if such DTAs arise from transactions occurring after 30 November 2021.
If assets are transferred between CEs after 30 November 2021 and before the commencement of the transitional period, the tax basis of the acquired assets (excluding inventory) must be based on the book value of the transferring Entity at the time of the transfer. The DTAs and DTLs falling under the GloBE rules must be determined on this basis, considering the following: