Kuwait Ministry of Finance (MOF) issued Circular No. 1 of 2026 dated 29 April 2026 introducing an optional Advance Tax Payment Program (Program) for entities in-scope of Kuwait Domestic Minimum Top-Up Tax Law (DMTT) No. 157 of 2024.

The Program represents a procedural mechanism aimed at facilitating early tax collection, while offering administrative incentives to participating taxpayers.

 

At a Glance:

• The Program introduces an optional mechanism for entities in-scope of DMTT to file a provisional DMTT statement and pay the estimated tax liability in advance.
• The Program provides administrative incentives for taxpayers wishing to voluntarily participate in the Program.
• The Program applies only to tax periods ending on or before 31 March 2026.
• Participating in the Program does not waive the requirements of filing the actual tax declaration – there are no changes to the original deadlines for tax filing and tax payments.
• The Program is optional – there are no penal consequences for not participating in the Program and making the advance payment.

 

Applicability:

The Circular applies to taxpayers in-scope of DMTT in Kuwait and for tax periods ending on or before 31 March 2026. The Circular is effective from the date of its issuance 29 April 2026.
 

Incentives for participating in the advance tax payment program:

Taxpayers that participate in the Program will receive the following administrative incentives:

• Priority for completion of tax inspections, issuance of assessment, processing of tax refunds, and review of tax objections and appeals. This applies only to the tax period for which the advance tax payment is made.
• Priority in issuance and renewal of tax cards.

 

Mechanism:

The Circular outlines the following mechanism for participating in the Program:

• Taxpayers wishing to participate in the Program must submit a request to the MOF by no later than 31 May 2026.
• Participating taxpayers must file a provisional DMTT statement in a prescribed format, containing the estimated DMTT liability, by 30 June 2026.
• The estimated tax liability must be paid in one installment by 30 June 2026.
• Amounts paid will be treated as advance payments against the final tax liability.

There are no changes to the original deadlines for filing a DMTT return and for making the tax payment i.e. within 15 months following the end of the tax period.
 

Annexures to the Circular

The Circular is supported by the following prescribed templates:

• Provisional Tax Statement template; and
• Optional detailed schedule for computing the top-up tax.

 

Next Step

The Circular introduces an optional early tax payment mechanism, rather than a mandatory compliance requirement. The Circular will effectively apply only to the first DMTT period for most taxpayers (e.g. 1 January 2025 – 31 December 2025) since its application is limited to tax / financial periods ending on or before 31 March 2026. Taxpayers interested in participating in the Program should reassess the accuracy of their DMTT provisions as well as cash position in view of the stipulated deadlines.
 

How BDO Can Assist

Our team can assist interested parties with the following:

• Assessment of eligibility of opting into the Program
• Preparation of application to participate in the Program.
• Assisting with provisional tax computations.
• Assisting with the filing of the provisional tax statement.
• Ongoing tax advisory.
• Should you have any questions or require assistance, please do not hesitate to contact us.