KUWAIT CITY, Oct 9: The government of Kuwait has submitted an official request to the Organization for Economic Cooperation and Development (OECD) about its desire to join the framework of the draft tax law agreement prepared by the organization regarding the minimum tax that is supposed to be applied to multinational companies, reports Al-Rai daily.

The sources indicated that Kuwait is not a member of the comprehensive framework of the organization or the draft “economic cooperation” law in which 140 countries participate, but major Kuwaiti companies with multi-market activities, specifically those whose annual revenues from more than one market reach 750 million Euros, will be affected by the outcomes of the tax law.

The sources pointed out that in order to achieve the best gains for Kuwait from this agreement, it requested joining the framework of understandings taking place between the members of the organization from the participating countries regarding the draft law, which will include its companies and foreign companies that may operate in the local market, and according to the agreement, they may pay higher taxes to Kuwait than currently estimated; indicating that the tax rate on multinational companies may reach 15 percent. The sources revealed that the tax base that the OECD aims to create will not be limited to multinational companies within the private sector, as it is likely to also include government entities whose investment activity is distributed across several markets, and which benefit from the support of their home country in terms of not paying any taxes.