Kuwait City: The government of Kuwait is exploring the possibility of increasing fees for expatriates and visitors as part of broader efforts to strengthen the state budget and diversify income sources. This measure is being considered alongside newly implemented taxation on multinational corporations, aimed at reducing dependency on oil revenues and mitigating the impact of global oil price fluctuations.
Minister of Finance Noura Al-Fassam announced that the recently introduced supplementary local minimum tax of at least 15% on multinational entities is expected to generate approximately KD 250 million annually (around $800 million). This tax, introduced under Decree No. 157 of 2024, applies to multinational groups operating across various jurisdictions and is expected to affect around 300 such entities.
Economic Reforms Targeted at Diversification
In an interview with Sky News Arabia, Al-Fassam emphasized the government’s focus on implementing financial and economic reforms. These include improving public sector efficiency, fostering private sector growth, attracting investments, creating job opportunities, and ensuring tax fairness.
While foreign companies are currently subject to income tax in Kuwait, sources indicate that extending such taxation to local companies would require a significant policy shift, which may be considered during the temporary absence of the National Assembly. However, imposing taxes on Kuwaiti citizens or local companies is reportedly not on the agenda for now.
Increased Fees for Expatriates
The proposal to raise residency and transaction fees for expatriates and visitors reflects a growing trend in the Gulf region to boost non-oil revenues. These measures aim to offset financial challenges while supporting Kuwait’s reform agenda. If implemented, the fee hikes could further impact the cost of living for expatriates and the expenses associated with visiting the country.
Strategic Goals
These initiatives align with Kuwait’s broader economic strategy to reduce dependency on oil, increase non-oil revenues, and ensure long-term fiscal sustainability.
