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July 23, 2026

Ministerial Decision No. 55 of 2025 establishes Kuwait's DMTT framework under Decree-Law No. 157 of 2024. Article 40 outlines the treatment of post-filing adjustments to a Constituent Entity's Covered Taxes. It mandates that while most adjustments are recognised in the current period, any decrease in Covered Taxes for a prior period necessitates a full recalculation of that period's Effective Tax Rate and Top-up Tax. The article provides an exception for immaterial decreases under EUR 1 million and specifies rules for deferred tax adjustments arising from domestic rate changes.

CHAPTER 4 - CALCULATION OF ADJUSTED COVERED TAXES

Article 40 - Post-filing Adjustments and Tax Rate Changes

Any adjustment to a CE’s Covered Tax liability for a previous Tax Period, as recorded in the Financial Accounts, shall be treated as an adjustment to the Covered Taxes in the Tax Period in which the adjustment is made, unless the adjustment relates to a Tax Period in which there was a decrease in Covered Taxes for the CE located in the State.