Bahrain has announced the introduction of a Domestic Minimum Top-up Tax (DMTT) for Multinational Enterprises (MNEs) as outlined in Decree Law (11) of 2024.

The new framework for MNEs is fully aligned with the Organisation for Economic Co-operation and Development (OECD) guidelines, and will be effective from January 1, underscoring Bahrain’s commitment to promoting global economic fairness and transparency.

This strategic move builds on Bahrain’s proactive engagement with the OECD, dating back to 2018 when it joined the Inclusive Framework and endorsed the groundbreaking two-pillar reform.

To date, more than 140 jurisdictions have signed up for this international tax reform. As part of this two-pillar reform, the OECD established a Global

Minimum Corporate Tax to ensure large MNEs pay a minimum tax of 15 per cent on profits in each country where they operate.

With the introduction of the DMTT, the kingdom demonstrates its international commitment to global co-operation and its dedication to fostering a fair and level playing field in international taxation, the National Bureau for Revenue (NBR) said in a statement.

Implementing this initiative aims to ensure that MNEs pay the minimum 15pc tax on the profits generated in the kingdom.

This decree law will apply exclusively to large MNEs operating in the kingdom, with global revenues surpassing the Pillar Two threshold of 750 million euros (BD312m). Eligible businesses are urged to register with the NBR before the deadline specified in the relevant legislation.

For additional inquiries, the NBR call centre can be reached on 80008001, available 24 hours, seven days a week, or by email through mne@nbr.gov.bh.

Further information and the latest updates can also be found on the NBR’s website at www.nbr.gov.bh.

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