Bahrain to Implement 15% Minimum Tax on Large Multinationals
- Publish date: Tuesday، 03 September 2024
- Related articles
- Bahrain Plans to Implement Corporate Tax on Companies
- Bahrain Introduces BD3 Hotel Accommodation Tax for Tourists
- Bahrain Shura Council Approves Value-Added Tax increase to 10%
Bahrain has announced a new tax policy that will affect large multinational companies starting January 1. The country will impose a 15% domestic minimum top-up tax on these firms. This move aligns with international guidelines set by the Organization for Economic Cooperation and Development (OECD).
Who It Affects
The tax targets multinational corporations with global revenues over 750 million euros (about $829 million) that operate in Bahrain. This means that any qualifying company will need to pay at least 15% tax on the profits it earns within Bahrain.
Background and Purpose
Bahrain’s new tax policy is part of its collaboration with the OECD, which began in 2018. The initiative is in line with the OECD’s two-pillar reform, aiming to set a global minimum corporate tax rate. This reform ensures that large multinationals pay a minimum tax rate of 15% in every country they operate in.
Aligning with International Standards
According to the Bahrain News Agency, this tax policy is a step towards aligning with international tax standards. It aims to ensure fair taxation of multinational enterprises and prevent tax base erosion.