November 02 , 2023Request Full Report
The G20 and OECD jointly rolled out the BEPS (Base erosion and profit shifting) framework to ensure a uniform tax rate across countries as different tax rates lead to some portion of the profits of multinational companies not being taxed at all. OECD established the Inclusive Framework on BEPS in June 2016. Pillar-2 of the IF imposes global minimum effective tax of 15% on companies with revenues of at least EUR 750 million in at least two of the last four years and have foreign operations. All five GCC countries except Kuwait are members of the OECD BEPS. However, there is no indication from the countries regarding the application of the rules. It is being reported that Kuwait has submitted a proposal to join the OECD IF in October 2023. Higher tax revenues will aid Kuwaits ambition to diversify their source of revenue from oil.