(MENAFN) Bahrain will implement a 15 percent tax on large multinational companies operating within the Kingdom, starting January 1, 2025. This new tax will target the profits of multinational corporations whose global revenues surpass 750 million euros, which is approximately 828.23 million dollars. The tax measure was reported by a local news agency, reflecting Bahrain's alignment with international tax standards.

The National Revenue Authority of Bahrain, as cited by the official agency, confirmed that this tax will be enforced under Decree-Law No. (11) of 2024. The decree is designed to comply with the requirements of the second pillar of the Organization for Economic Co-operation and Development (OECD). The new tax regulation will take effect at the beginning of 2025, and companies that meet the criteria are required to register with the Authority within the timeframe specified by the relevant legislation.

This move is part of Bahrain's broader commitment to global tax reform, following its 2018 accession to the OECD's Inclusive Framework, which supports the two-pillar approach to tax reform. The framework, endorsed by over 140 countries, including members of the Gulf Cooperation Council, aims to address challenges posed by the digitalization of the global economy.

As part of the tax reform, a global minimum tax rate of 15 percent has been introduced to ensure that large multinational enterprises pay a fair share of taxes in every country where they operate. Bahrain has emphasized its commitment to adhering to international tax standards, ensuring that companies covered by this law will pay a minimum tax rate of 15 percent on profits earned within the Kingdom, thereby promoting fairness and equal opportunities for businesses.

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