Boursa Kuwait concludes awareness session on IFRS developments and the new DMTT law for multinational enterprises

Boursa Kuwait successfully concluded interactive awareness sessions entitled “IFRS Update and the New DMTT Law for Multinational Enterprises,” held at the Khaled AlKharafi Auditorium at the Boursa Kuwait building.

Organized in collaboration with CFA Society and KPMG Kuwait, the sessions brought together finance professionals, listed companies, and representatives from financial institutions to discuss recent regulatory developments impacting financial reporting and tax compliance in the Kuwaiti market.

The sessions were presented by senior executives from the Tax and Corporate Services Sector at KPMG Kuwait, who offered participants practical insights into navigating the evolving regulatory landscape and its impact on financial reporting and taxation.

The first session focused on key updates within the International Financial Reporting Standards (IFRS) framework, notably the upcoming implementation of IFRS 18, which will come into effect on January 1, 2027, and will replace IAS 1.

The standard introduces a fundamentally revised structure for the presentation and disclosure of financial statements, including new defined subtotals in the statement of profit or loss, enhanced requirements for transparency in management-defined performance measures, and more consistent classification of income and expenses.

Speakers highlighted that the changes aim to improve comparability, clarity and the quality of financial reporting for users of financial statements, while requiring companies to reassess their reporting systems, internal controls, and communication with investors ahead of the transition.

Participants also received an overview of IFRS S1 and IFRS S2, which outline requirements related to sustainability and climate-related disclosures, supporting greater alignment with global ESG reporting practices.

The second session focused on the recently introduced Domestic Minimum Top-up Tax (DMTT) Law for multinational enterprises, which came into effect on January 1, 2025, together with its Executive Bylaws, and establishes a comprehensive framework for implementing DMTT regulations and applying global minimum tax provisions in Kuwait.

During the session, experts underscored the law’s requirement that large multinational enterprises (MNEs) with consolidated global revenues of at least €750 million in two of the previous four years pay a minimum effective tax rate of 15% on their Kuwait-sourced profits.

Under the new rules, companies that fall within scope will transition from Kuwait’s previous tax obligations, such as corporate income tax, zakat, National Labor Support Tax (NLST) and other legacy tax regimes to a modernized framework aligned with international standards. This shift aims to simplify compliance, ensure consistency and support Kuwait’s integration with global tax practices. The new framework also reflects alignment with global standards under the OECD/G20’s “Pillar Two” initiative aimed at preventing profit shifting and ensuring fair taxation.

These awareness sessions reflect Boursa Kuwait’s ongoing commitment to keeping market participants fully informed of key regulatory and reporting developments that directly impact financial transparency and tax compliance.

The company aims to provide practical guidance that supports listed companies and financial institutions in strengthening their reporting frameworks, enhancing governance practices and aligning with international standards in a manner that supports market stability, investor confidence and enhances the long-term sustainable growth of the Kuwaiti capital market and its participants.

Boursa Kuwait recently amended its Rulebook in line with the Capital Markets Authority’s Circular No. 4 of 2025, which requires companies listed on the “Premier” Market to disclose their 2025 sustainability reports and publish them on the bourse’s website no later than the end of the second quarter of the financial year (end of June 2026), taking into account differences in companies’ financial periods.

Organizing enlightening workshops and other educational initiatives form an integral part of Boursa Kuwait's strategy for corporate social responsibility (CSR), which aims to create a lasting and meaningful impact on the communities where it operates. It also underscores Boursa Kuwait’s role as a catalyst for market development and reflects its dedication to building a resilient ecosystem aligned with international best practices and the objectives of New Kuwait Vision 2035. It also aligns with Goal 4 - Quality Education - and Goal 17 - Partnership for the Goals - of the United Nations' Sustainable Development Goals.