Bahrain announced it will introduce a Domestic Minimum Top-up Tax (DMTT) for multinational enterprises (MNEs) beginning January 1, 2025, according to the country’s state news agency. This new tax policy will ensure that MNEs with global revenues exceeding 750 million euros ($828.23 million) will face a minimum 15% tax rate on their profits in Bahrain.
The decision aligns Bahrain with international tax reforms aimed at addressing tax base erosion and profit shifting by large corporations. This move is part of a broader global effort led by the Organisation for Economic Co-operation and Development (OECD) to establish a global minimum tax rate for large multinational companies, ensuring they pay a fair share of taxes regardless of where they operate.
Bahrain’s state news agency emphasized that the introduction of this tax aims to boost the country’s fiscal revenues while aligning with international tax standards. Bahrain’s DMTT will apply only to multinational corporations meeting the revenue threshold, ensuring that smaller businesses remain unaffected by the new tax measure.
By adopting this policy, Bahrain is joining a growing list of countries that have committed to implementing a global minimum tax rate, signaling its readiness to collaborate with international bodies to enhance tax transparency and fairness.
