The Kingdom of Bahrain recently announced the implementation of a Domestic Minimum Top-up Tax (DMTT) for Multinational Enterprises (MNEs) in accordance with Decree Law 11 of 2024. This new framework, which will take effect on 1 January 2025, is in line with the OECD guidelines and is designed to promote global economic fairness and transparency. Bahrain’s proactive engagement with the OECD, dating back to 2018, has led to this strategic move to ensure that large MNEs pay a minimum tax of 15% on profits in each country where they operate.
Over 140 jurisdictions have signed up for the international tax reform initiated by the OECD, which includes the establishment of a Global Minimum Corporate Tax. By introducing the DMTT, Bahrain demonstrates its commitment to global cooperation and creating a level playing field in international taxation. The Kingdom aims to ensure that MNEs pay the minimum 15% tax on profits generated within Bahrain. Eligible businesses operating in Bahrain with global revenues exceeding EUR 750 million are encouraged to register with the National Bureau for Revenue (NBR) before the specified deadline.
For any inquiries regarding the DMTT, businesses can contact the NBR call center at 80008001, which is available 24/7, or reach out via email at [email protected]. The NBR’s website, www.nbr.gov.bh, also provides additional information and updates on the DMTT implementation. By implementing this initiative, Bahrain is taking steps to enhance transparency and fairness in international taxation and ensure that all MNEs operating in the Kingdom contribute their fair share of taxes.
This new tax reform highlights Bahrain’s commitment to global economic standards and its dedication to aligning its tax policies with international guidelines. By adopting the two-pillar approach proposed by the OECD, Bahrain aims to create a more transparent and equitable tax system for large MNEs. The implementation of the DMTT underscores Bahrain’s efforts to promote economic fairness and cooperation on a global scale while ensuring that all businesses operating within the Kingdom comply with minimum tax requirements.
Businesses with global revenues exceeding EUR 750 million operating within Bahrain are urged to register with the NBR to comply with the DMTT regulations. The NBR’s contact information is readily available for any inquiries or assistance regarding the registration process. With the implementation of the DMTT, Bahrain is not only enhancing its tax system but also fostering a more transparent and competitive business environment for all international enterprises operating within its borders. By upholding international tax standards, Bahrain is positioning itself as a key player in promoting fair taxation practices and global economic cooperation.
