Today's Edition
Manama (AFP)
Bahrain is to introduce a tax on large multinational firms for the first time, the kingdom's official news agency reported on Sunday, bringing the Gulf state in line with efforts towards a global minimum corporate rate.
Beginning in January 2025, the measure will place a minimum tax of 15 percent on revenues over 750 million euros ($830 million) generated in the country, the Bahrain News Agency (BNA) reported.
The move aligns Bahrain with the standards of the Organisation for Economic Co-operation and Development (OECD) which spearheaded the global minimum 15-percent rate agreed to in principle by around 140 countries in 2021.
The BNA reported that the tax "builds on Bahrain's proactive engagement with the OECD, dating back to 2018" and "demonstrates its international commitment to global cooperation and its dedication to fostering a fair and level playing field in international taxation".
An oil producer and non-OPEC member, Bahrain has sought in recent years to diversify its revenues.
Oman and Kuwait already have a 15-precent tax rate on foreign companies.
"Bahrain is notable because it has no corporation income tax currently and is going straight to OECD compliance," Justin Alexander, director of the Khalij Economics consultancy told AFP.
According to the OECD, the introduction of a worldwide minimum corporate tax rate should generate $220 billion in additional annual revenue for governments.
