Bahrain took a big leap towards meeting its global tax
compliance commitments with the publication of Decree-Law No. (11)
of 2024 on the Taxation of Multinational Enterprises on 1
September.
The Decree-Law will introduce a Domestic Minimum Top-up Tax
(DMTT) of 15% on the profits of Bahraini constituent entities of
large Multinational Enterprises (MNE) for financial years starting
on or after 1 January 2025.
As a member of the OECD/G20 Inclusive Framework on Base Erosion
and Profit Shifting, Bahrain is a signatory to the OECD's
'Two-Pillar' solution to address the tax challenges arising
from the digitalisation of the economy.
Pillar 2 of this solution, known as the Global Base Erosion
(GloBE) rules, requires MNEs with consolidated annual revenues of
more than €750 million to pay a minimum 15% tax on its profits
in each jurisdiction in which it operates.
