Economy Multinationals in Bahrain face 15% tax By Pramod Kumar September 2, 2024, 9:57 AM Shutterstock/Vladimir Zhoga Multinational retailers with shops at Manama's Avenues mall might be hit by the new tax Tax to match OECD guidelines Affects those with $830m-plus revenue Comes in January 1 Bahrain is to introduce a 15 percent tax on profits generated in the country by large multinational companies on January 1 next year. The domestic minimum top-up tax will apply only to multinationals with global revenues of more than €750 million ($830 million), said the state-run Bahrain News Agency. Companies that meet these criteria, which are likely to include household names such as Unilever, Fuji and Coca-Cola, will be required to register with the National Bureau for Revenue before the deadline. NewsletterGet the Best of AGBI delivered straight to your inbox every week Bahrain said the tax would align with international standards and ensure fair competition. The new framework matches Organisation for Economic Co-operation and Development guidelines, which call for a minimum corporate tax rate of 15 percent for multinationals. Bahrain’s economy expands on non-oil sector growth Event tourism the spur for economic growth in Bahra Bahrain attracts a record $6.8bn in foreign investment More than 140 jurisdictions have signed up for the OECD tax programme, the Bahrain news agency said. Bahrain joined the organisation’s Inclusive Framework in 2018. In February, the World Economic Forum said the OECD policy was aimed at curbing the practice of shielding multi-billion-dollar profits in tax havens. The policy also seeks to remove the incentive for nations that operate as tax havens for corporations, it said. The Bahrain Economic Development Board attracted more than $1.7 billion from local and international investors last year, a 55 percent rise on the $1.1 billion brought in since 2022, it said in February. The financial services sector has overtaken oil and gas to become the largest contributor to Bahrain’s economy, accounting for 17.5 percent of real GDP. The UAE brought in its first federal income tax on June 1 last year. The rate was set at 9 percent on taxable income over AED375,000 ($102,000), with no tax on income up to this threshold. Personal income, including from employment, real estate and investments, remained untaxed. Foreign investors not conducting business in the UAE were also exempt from tax.