Bahrain on Sunday announced the introduction of a new tax, Domestic Minimum Top-up Tax (DMTT) for multinational enterprises (MNEs) which will come into effect from January 1, 2025. The new tax, which is in line with the Organisation for Economic Co-operation and Development (OECD) guidelines, is aimed at promoting global economic fairness and transparency. Implementing the new tax will ensure that the MNEs pay the minimum 15 per cent tax on the profits generated in the Gulf country, hence boosting revenues for the kingdom. The decision to implement tax comes on the back of Bahrain’s proactive engagement with the OECD, dating back to 2018 when it joined the Inclusive Framework and endorsed the groundbreaking two-pillar reform. To date, over 140 jurisdictions have signed up for this international tax reform. As part of this two-pillar reform, the OECD established a global minimum corporate tax to ensure large companies pay a minimum tax of 15 per cent on profits in each country where they operate. Bahrain’s Decree Law No. 11 for the year 2024 will apply to large MNEs operating in the country, with global revenues surpassing the Pillar Two threshold of 750 million euros (Dh3.04 billion; BHD312.11 million). The Gulf country […]