Global Daily Tax News, Kuwait Approves Ratification Of The BEPS MLI, (Jun 10, 2026)

Kuwait is set to ratify the BEPS multilateral instrument (BEPS MLI).

Decree-Law No. 62 of 2026 was published in the Official Gazette on June 7, 2026, approving the ratification of the MLI, which enables countries to modify their existing tax treaties to include measures developed under the OECD/G20 BEPS project without having to individually renegotiate these treaties.

Kuwait signed the BEPS MLI on June 7, 2017. The MLI will become effective for Kuwait from the first day of the fourth month following the country depositing its instrument of ratification with the OECD.

The instrument will implement minimum standards to counter treaty abuse, prevent the artificial avoidance of permanent establishment status, improve dispute resolution mechanisms, and neutralize the effects of hybrid mismatch arrangements.

Jurisdictions may choose, when ratifying the BEPS MLI, which of their treaties they wish to amend through the MLI. These treaties are known as "covered agreements".

Providing the other signatory territory has also selected that agreement as a covered agreement and the BEPS MLI has entered into force for that other signatory territory, the changes will be effective immediately from the date the MLI becomes effective for Kuwait.

Upon signing the MLI, Kuwait selected 45 of its treaties as "covered agreements" for purposes of the BEPS MLI.