KUWAIT: Kuwait’s Cabinet has approved a draft decree-law imposing a 15 percent tax on multinational companies operating in more than one country, in line with global tax standards. The new law aims to combat tax evasion and prevent the leakage of tax revenues to other jurisdictions. It is set to come into effect on January 1, 2025. The decision was made during the Cabinet’s weekly meeting held on Tuesday, December 24, 2024, at Bayan Palace, chaired by HH the Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah.
As part of ongoing efforts to improve infrastructure and reduce waiting times for housing, Cabinet has tasked the Ministry of Public Works to coordinate with the Public Authority for Housing Welfare and other relevant entities to expedite the completion of contracts for permanent sewage treatment plants. These plants will be built in residential cities, as well as in areas and neighborhoods currently under development or planned for future construction. This initiative aims to ensure the timely delivery of these critical infrastructure projects.
The Cabinet also reviewed a presentation by the Minister of State for Communications, Omar Al-Omar, on the progress of the framework agreement between the State of Kuwait and Google Cloud. The agreement covers various initiatives aimed at improving digital infrastructure. Sheikh Abdullah Sabah Al-Sabah, head of the supervisory committee, and committee member Mohammad Al-Rashed provided updates on the projects underway, noting some challenges in their implementation. The Cabinet directed the relevant ministers and government entities to cooperate with the committee to resolve any obstacles and requested quarterly progress reports.
In terms of diplomatic initiatives, the Cabinet discussed recent agreements with India, including a Memorandum of Understanding (MoU) on defense cooperation, an executive sports program for 2025–2028, and a cultural exchange program for 2025–2029. Additionally, the Cabinet reviewed a framework agreement to establish the International Solar Alliance, which aims to promote global solar energy cooperation.
The Cabinet also discussed the outcomes of First Deputy Prime Minister Sheikh Fahad Al-Yousef Al-Sabah’s recent visits. In Riyadh, he held talks with Saudi Arabia’s Minister of Interior, Prince Abdulaziz bin Saud, focusing on bilateral security issues. In Basra, Iraq, he inaugurated the Kuwait Surgical Hospital, a gift from Kuwait to the people of Iraq, underscoring the continued strong ties between the two countries.