Kuwait continues to align its tax framework with international transparency standards. On 18 October 2026, Kuwait published Decree-Law No. 116 of 2026 approving the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC MCAA). Kuwait had signed the agreement in Paris on 22 June 2026, and the decree-law took effect on the date of its publication.
What is Country-by-Country Reporting?
Country-by-Country (CbC) Reports give tax authorities a high-level view of how a large multinational group’s revenue, profits, taxes paid and activities are distributed across the jurisdictions where it operates. The CbC MCAA provides the legal framework for participating tax authorities to exchange these reports automatically each year. More than 115 jurisdictions have signed it.
A wider transparency agenda
The approval is part of a broader series of steps taken in 2026:
- Decree-Law No. 57 of 2026 (April 2026) completed the domestic framework for the OECD Common Reporting Standard (CRS), with the first automatic exchanges of financial account information expected in 2027.
- Kuwait also signed the CRS MCAA 2.0 Addendum on 22 June 2026.
- Decree No. 62 of 2026 approved Kuwait’s accession to the Multilateral Instrument (MLI) to implement tax-treaty-related BEPS measures.
What does this mean for businesses?
For multinational groups with operations in Kuwait, more tax information will be shared automatically between authorities, making consistency across jurisdictions more important than ever. Groups should:
- Review their current CbC reporting arrangements, including the reporting entity and filing jurisdiction.
- Check that transfer pricing policies and documentation are consistent with the figures reported.
- Monitor upcoming Ministry of Finance guidance on notifications, reporting periods and penalties.
We can help you review your reporting position and prepare for the new requirements.
This article is for general information only and does not constitute tax or legal advice. For advice on your specific situation, please contact our team.
