Latest news with #Kuwaiti
Arab Times
9 minutes ago
- Politics
- Arab Times
Teaching staff scheduled to begin duties for new school year on Aug 24
KUWAIT CITY, July 23: The Ministry of Education has officially announced that all newly appointed Kuwaiti and non-Kuwaiti teachers are to begin their duties for the upcoming academic year on Sunday, August 24, 2025. The directive was issued by Acting Assistant Undersecretary for General Education, Mansour Al-Dhafiri, in a formal letter addressed to the Undersecretary of the Administrative Sector. In the letter, Al-Dhafiri referenced prior correspondence from the Assistant Undersecretary for Administrative Affairs and Administrative Development — specifically, Letter No. 972701 dated July 3, 2025, and Letter No. 944042 dated June 29, 2025 — both of which discussed the schedule for reporting to duty for the 2025/2026 academic year. Al-Dhafiri confirmed that the start date applies to both Kuwaiti and non-Kuwaiti teachers and emphasized that this timeline is consistent with preparations for the first semester. The decision ensures that all educational staff are present ahead of the school year's official opening, allowing sufficient time for administrative procedures, orientation, and classroom readiness. The Ministry continues to coordinate across relevant departments to ensure a smooth and timely start to the new academic term.
Zawya
5 hours ago
- Business
- Zawya
KUFPEC announces final investment decision with Shell Egypt to develop gas exploration at Mina West field
CAIRO: A subsidiary of Kuwait Foreign Petroleum Exploration Company (KUFPEC) announced on Tuesday a final investment decision with Shell Egypt to develop gas exploration at Egypt's Mina West field, Kuwaiti state news agency reported. The field is located in the North East El-Amriya block in the Mediterranean Sea. (Reporting by Menna Alaa El-Din and Muhammed Al Gebaly; Editing by Chris Reese)
Kuwait Times
7 hours ago
- Health
- Kuwait Times
Chest Diseases Hospital performs Kuwait's first minimally invasive coronary artery surgeries
Breakthrough procedure shortens recovery time and marks leap in cardiac care KUWAIT: In a groundbreaking medical milestone, the Chest Diseases Hospital has successfully performed minimally invasive coronary artery surgeries on a number of patients - marking the first time such a procedure has been carried out in Kuwait. Led by Consultant Cardiac Surgeon Dr Muhammad Meshal Al-Ayar, the surgical team achieved a 100 percent success rate, with all patients recovering satisfactorily. The procedures, hailed as a significant advancement in cardiac care, signal a new chapter in Kuwait's medical achievements. KUWAIT: Chest Diseases Hospital successfully performed minimally invasive coronary artery surgeries for a number of patients—marking the first time such procedures have been carried out in Kuwait. Led by Consultant Cardiac Surgeon Dr Muhammad Meshal Al-Ayar, the surgical team achieved a 100 percent success rate, with all patients recovering satisfactorily. Dr Al-Ayar explained that the innovative technique differs fundamentally from traditional coronary artery bypass surgery, which requires opening the entire chest. Instead, the new method involves a small incision - no larger than five centimeters - on the left side of the chest. This less invasive approach significantly reduces the extent of surgical intervention, shortens hospitalization and accelerates recovery. 'This represents a qualitative leap in heart surgery,' Dr Al-Ayar said, noting that patients who undergo this technique are able to return to their normal activities within just three to five days, compared to the extended recovery periods associated with conventional procedures. He added that the adoption of this advanced surgical method reflects the hospital's commitment to keeping pace with the latest international medical technologies and offering world-class healthcare services. 'This achievement highlights the capability of Kuwaiti medical professionals and their readiness to implement cutting-edge surgical practices in accordance with global standards,' he said. Dr Al-Ayar extended his gratitude to the Ministry of Health for its ongoing support and for equipping the hospital with state-of-the-art medical technologies. He also praised the leadership of the Chest Diseases Hospital, particularly Medical Director Dr Jamal Al-Fadhli, for their continuous encouragement and support of the hospital's medical teams. The success of these pioneering surgeries is a strong indicator of the advancement of the national healthcare system and the growing role of local expertise in delivering top-tier medical services in Kuwait.
Kuwait Times
7 hours ago
- Business
- Kuwait Times
The importance of GloBE income for Kuwait
Beyond the balance sheet: Cornerstone of global minimum tax calculation KUWAIT: Kuwait's financial landscape is evolving rapidly with the recent implementation of the BEPS Pillar Two initiative, as enshrined in Law 157/2024. While the headline figure of a 15 percent global minimum corporate tax rate often captures attention, the mechanics behind this calculation are equally important. At the very core of determining whether a large multinational enterprise (MNE) owes additional tax under these new rules is a concept called 'GloBE income or loss'. This is not simply the profit you see on a company's financial statements or its taxable income under local Kuwaiti tax laws. GloBE income or loss is a specially defined and adjusted measure, designed to create a consistent and comparable tax base across all jurisdictions where an MNE operates. Understanding this foundational concept is crucial for grasping how the Pillar Two system truly works. The starting point: Financial accounting net income or loss The journey to calculating GloBE income or loss begins with the familiar: the financial accounting net income or loss (FANIL) of each individual 'Constituent Entity', ie, a company or branch that is part of the MNE group, in a particular jurisdiction. This is the 'bottom-line' profit or loss figure that companies prepare for their consolidated financial statements, typically in accordance with recognized accounting standards like International Financial Reporting Standards (IFRS) or US Generally Accepted Accounting Principles (GAAP). This starting point makes sense because financial statements are already widely prepared by MNEs and provide a comprehensive view of their economic performance. However, different accounting standards and national tax laws can lead to significant variations in how profits are reported or taxed. This is where the necessary adjustments come in. Why adjustments are essential: Bridging the gaps If the GloBE Rules simply used accounting profit, they would not achieve their goal of a consistent global minimum tax. Accounting rules are designed for financial reporting to investors and stakeholders, not primarily for tax purposes. Similarly, domestic tax laws are shaped by national economic and social policies, leading to deductions, exemptions, and timing differences that vary widely from country to country. The purpose of GloBE adjustments is to neutralize these differences, ensuring that the 15 percent minimum tax is applied to a uniform and comparable profit base worldwide. Think of it as creating a common language for profit that all countries can understand and apply for Pillar Two purposes. Key adjustments: What gets added back or taken out? The GloBE Rules specify a comprehensive list of adjustments to the financial accounting net income or loss. While the details can be highly technical, we can group them into several common categories to understand their intent: Tax-related adjustments: • Net tax expense: A crucial adjustment is to exclude the income tax expense itself from the accounting profit. This is because we are calculating the effective tax rate, so we need to start with profit before taxes to correctly determine the tax burden. Non-income taxes, like property taxes or payroll taxes, are generally not adjusted out, as they are considered operating expenses. • Certain tax credits: Qualified refundable tax credits (QRTCs) – which are tax credits that are refundable in cash even if the company has no tax liability – are treated as income for GloBE purposes, not as a reduction in tax. This prevents them from artificially lowering the ETR. Non-refundable tax credits, however, are treated as a reduction in covered taxes. Exclusions for specific types of income or gain: • Excluded dividends: Dividends received from ownership interests, especially those where the MNE holds a significant stake, are generally excluded from GloBE Income. This prevents the same profits from being taxed multiple times as they flow up an MNE's ownership chain, ensuring that profits are taxed once at the operating entity level. • Excluded equity gains or losses: Gains or losses arising from the revaluation or disposal of certain equity investments, eg, holdings in other companies that are not part of the MNE group's core business, are often excluded. This aims to focus the GloBE calculation on the MNE's core operating profits. • Revaluation gains and losses: Gains or losses from the revaluation of property, plant, and equipment, if recognized in Other Comprehensive Income rather than the main profit and loss statement, are typically excluded unless they relate to certain types of financial instruments. Adjustments for policy reasons and distortions: • Illegal payments, fines and penalties: Expenses related to illegal payments, bribes, or fines and penalties that are not deductible for tax purposes in most jurisdictions are generally added back to profit for GloBE purposes. This ensures that a company cannot reduce its effective tax rate through illicit activities. • Asymmetric foreign currency gains/losses: Certain foreign exchange gains or losses that are treated differently for accounting and tax purposes, leading to asymmetric outcomes, are adjusted to ensure consistency. • Prior period errors and changes in accounting principles: Adjustments are made to ensure that the impact of correcting errors or changing accounting policies in the current year does not distort the GloBE Income of that specific year, especially if they relate to periods before Pillar Two applied. • Accrued pension expenses: Adjustments are made for certain pension-related expenses or income to align them with actual contributions or distributions. • Stock-based compensation: Differences in accounting and tax treatment of stock-based compensation can lead to adjustments. • Intra-group financing: Specific rules apply to inter-company financing arrangements to prevent artificial shifting of income or expenses. Allocation rules: Where does the income belong? Once the adjustments are made at the individual entity level, the GloBE rules also provide for specific allocation rules. For instance: • Permanent establishments (PEs): The income or loss of a PE, ie a fixed place of business in another country, like a branch, is generally considered to belong to the jurisdiction where the PE is located for GloBE purposes, reflecting its separate economic activity. • Flow-through entities: For entities that are transparent for tax purposes, meaning their income is taxed directly in the hands of their owners, eg partnerships, specific rules determine how their income or loss is allocated among the MNE group members. The importance of GloBE income for Kuwait For Kuwait and its implementation of Pillar Two, the precise calculation of GloBE Income or Loss for each Constituent Entity within our borders is paramount. When we talk about the qualified domestic minimum top-up tax (QDMTT) – Kuwait's strategic mechanism to collect its share of the top-up tax – the QDMTT relies directly on this GloBE Income figure. If an MNE's constituent entities in Kuwait collectively have a positive GloBE Income, but their effective tax rate (ETR), GloBE Income divided by Adjusted Covered Taxes, falls below 15 percent, then a top-up tax will be triggered. This top-up tax is calculated on the 'excess profit' which is directly derived from the GloBE Income, after accounting for a 'substance-based income exclusion (SBIE)', which allows for a routine return on tangible assets and payroll. ETR, top-up tax, excess profit and SBIE are the subject matter of our next articles, so please stay tuned! Challenges and preparations for MNEs in Kuwait For MNEs operating in Kuwait, preparing for GloBE Income calculations presents significant challenges: • Data granularity: Companies need to collect and analyze financial data at a highly granular, entity-by-entity and jurisdictional level – often far more detailed than their current tax or even accounting systems might readily provide. • System readiness: Existing accounting and enterprise resource planning (ERP) systems may not be configured to automatically generate GloBE-compliant income figures, necessitating significant system upgrades or manual adjustments. • Expertise: Understanding and correctly applying the numerous GloBE adjustments requires specialized tax and accounting expertise. A new era of profit measurement The concept of GloBE Income or Loss is a cornerstone of the global minimum tax framework. It represents a shift from diverse national tax bases to a standardized, internationally agreed-upon measure of profit, specifically designed to identify and tax undertaxed income. For Kuwait, mastering the intricacies of GloBE Income calculation is not just about compliance; it is about effectively leveraging the Pillar Two rules to secure our fair share of global corporate profits, ensuring a more stable and prosperous economic future for our nation. As companies adapt, the precision in defining and measuring this 'GloBE Income' will be fundamental to the success of this transformative tax reform. NOTE: Hassan M Abdulrahim is a Senior Instructor (Business) at Canadian College Kuwait and CEO & Co-founder of Visionary Consulting Company
Kuwait Times
7 hours ago
- Business
- Kuwait Times
Kuwait population tops 5m
Citizens drop, Asians dominate, domestic helpers rise, workforce up By B Izzak KUWAIT: Kuwait's population has surpassed the 5-million mark, recording 5,098,539 people as of June 30, 2025. Kuwaiti citizens dropped one percentage point, making up 30.4 percent of the population, the Public Authority for Civil Information (PACI) said on Tuesday. Kuwaitis numbered 1,550,547 on June 30 compared to 1.57 million at the end of 2024, PACI said in a population report. Kuwaitis made up 31.4 percent of the total population at the end of last year. For the first time, the Kuwaiti male population overtook their female counterparts. On June 30, Kuwaiti men numbered 776,656 against 773,891 Kuwaiti women. In previous statistics, Kuwaiti women formed 51 percent of the population against 49 percent of men. Kuwait's total population on June 30 grew by 2.16 percent from the end of last year and as high as 3.5 percent a year ago, despite the drop in the Kuwaiti population. The non-Kuwaiti population rose to a record 3,547,992 residents, or 69.6 percent of the country's population, growing by a strong 3.8 percent from the end of last year and adding 130,000 new entrants. Asians continue to dominate with 2.073 million or 40.7 percent of the total population, making up 58.4 percent of total expats. Asians rose by 3.65 percent from the end of 2024. Arabs come in third place with 1.37 million residents, around 26 percent of the total population. Africans, Americans, Europeans and others make up the rest. Indians remain the top expat community with over one million residents, followed by Egyptians at 660,000. Domestic helpers, a majority of them Asian, grew to 823,000 on June 30 from 781,000 at the end of 2024, an increase of 5.4 percent, according to the PACI report. On June 30, total workforce in Kuwait reached 3.1 million, slightly up from 3.065 million at the end of 2024. However, the strength of the Kuwaiti workforce dropped from 505,000 six months ago to 491,000 on June 30. A majority of the Kuwaiti workforce of 393,000 or 80 percent are government employees. Over 67,000 are in private sector jobs and 30,600 are unemployed, the report said. The expat workforce reached 2.65 million on June 30, up from 2.56 million at the end of 2024. Only 127,000 expats are employed in the government sector while about 1.696 million work in the private sector. The remaining 823,000 are domestic helpers.
