Manama– The Kingdom of Bahrain has announced the implementation of a new Domestic Minimum Top-up Tax (DMTT) for Multinational Enterprises (MNEs), as detailed in Decree Law (11) of 2024. This new tax initiative, set to take effect on January 1, 2025, aligns Bahrain with the Organisation for Economic Co-operation and Development (OECD) standards, reinforcing its commitment to global economic fairness and transparency.
This development marks a significant step in Bahrain’s ongoing engagement with the OECD, which began in 2018 when the Kingdom joined the Inclusive Framework and supported the landmark two-pillar tax reform. Over 140 jurisdictions worldwide have adopted this international tax reform. The OECD’s two-pillar reform includes the establishment of a Global Minimum Corporate Tax, mandating a 15% minimum tax rate on profits for large Multinational Enterprises in every country where they operate.
The DMTT underscores Bahrain’s dedication to international cooperation and aims to ensure that MNEs operating within its borders adhere to the minimum tax rate of 15% on their profits. The new tax will apply to large MNEs with global revenues exceeding EUR 750 million, as specified under Pillar Two of the reform.
Businesses affected by this new regulation are encouraged to register with the National Bureau for Revenue (NBR) ahead of the stipulated deadline. For more information or inquiries, the NBR’s call center is available around the clock at 80008001, and can also be contacted via email at [email protected]. Comprehensive details and updates are available on the NBR’s official website at www.nbr.gov.bh.
