Bahrain Introduces New Tax For Multinational Enterprises
|The new tax rule is applicable to multinational enterprises with global revenues exceeding 750 million euros operating in Bahrain.
Bahrain has recently announced the introduction of a Domestic Minimum Top-up Tax (DMTT) for Multinational Enterprises (MNEs). Under DMTT, multinational companies will pay a minimum 15% tax on the profits generated in the country. Bahrain News Agency reported that the new framework will be effective January 1, 2025.
As per the report, the new tax rule is applicable to multinational enterprises with global revenues exceeding 750 million euros (829 million US dollars) operating in Bahrain. The new framework aligns with the Organisation for Economic Co-operation and Development (OECD) guidelines.
This strategic move builds on the country's proactive engagement with the OECD, dating back to 2018, when it joined the Inclusive Framework and endorsed the groundbreaking two-pillar reform, reported Bahrain News Agency. Eligible businesses are required to register with the National Bureau for Revenue (NBR) before the deadline specified in the relevant legislation.