RIYADH: Foreign companies doing business in Bahrain will now have to pay a 15 percent tax on profits made in the country if their total revenue exceeds €750 million ($830 million) worldwide.
According to Decree Law 11 of 2024, the Gulf nation has instituted the Domestic Minimum Top-up Tax for Multinational Enterprises, as declared by the National Bureau for Revenue.
The recently implemented tax structure, which began on January 1st, conforms to the guidelines of the Organisation for Economic Co-operation and Development, thereby strengthening Bahrain’s dedication to international economic equity and transparency.
This action is a component of the Kingdom’s continued cooperation with the Organisation for Economic Cooperation and Development (OECD), which was initiated in 2018 when the nation joined the Inclusive Framework and supported the two-pillar international tax reform. Bahrain aims to ensure that large multinational corporations contribute to the local economy and to be in line with international tax standards.
As per the announcement made by the National Bureau for Revenue, the Gulf nation has implemented the Domestic Minimum Top-up Tax for Multinational Enterprises through Decree Law 11 of 2024. The new tax system went into effect on January 1st and is in line with the Organisation for Economic Co-operation and Development.
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