Bahrain introduces Domestic minimum top-up tax for multinational enterprises (MNEs)
Bahrain takes a significant leap in global tax compliance with the introduction of the Domestic minimum top-up tax (DMTT), effective 1 January 2025. This pivotal legislation, aligned with OECD's GloBE rules, imposes a 15% minimum tax on MNE groups with consolidated annual revenues exceeding € 750 million.
This enactment underscores Bahrain's steadfast commitment to encouraging a fair and transparent tax environment while mitigating profit-shifting to low or nil tax jurisdictions. For multinational enterprises, this development necessitates an urgent reassessment of tax strategies, compliance frameworks and financial reporting processes.
BDO Bahrain's tax advisers are poised to guide you through this transition, offering comprehensive impact assessments, tailored tax planning and strategic advice to ensure seamless compliance with the new regulations.
Please download the attached PDF in order to understand this landmark legislation and to contact our BDO's tax experts for assistance, both within Bahrain or in your local firm.
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