Bahrain’s Parliament has unanimously approved a new tax targeting multinational enterprises (MNEs). This decision came during a retrospective vote on a royal decree issued by His Majesty King Hamad concerning the Domestic Minimum Top-up Tax for MNEs Law, which occurred during the National Assembly’s recess last year.

Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa announced that the new law would apply to 348 multinational companies operating in Bahrain, with projected annual tax revenues estimated at approximately BD130 million. He highlighted that the tax aims to prevent revenue loss and enhance Bahrain’s economic environment by promoting stability and transparency.

In response to a parliamentary inquiry from first deputy speaker Abdulnabi Salman regarding the tax’s impact on multinational projects, Shaikh Salman reinforced the government’s commitment to fiscal sustainability. He stated that this tax would also improve Bahrain’s attractiveness as a destination for responsible foreign investment. Furthermore, he noted Bahrain’s involvement in the Organisation for Economic Co-operation and Development (OECD) Inclusive Framework since 2018, which includes more than 140 countries, including members of the Gulf Cooperation Council (GCC).

“This initiative is part of global efforts to combat base erosion and profit shifting (BEPS), ensuring that profits are taxed where economic activities generating them take place,” explained Shaikh Salman. He emphasized that adopting the OECD’s Pillar Two Model Rules is a proactive step towards achieving international tax fairness, preventing revenue leakage, and maintaining Bahrain’s reputation as a transparent and cooperative jurisdiction.

Pillar Two establishes a global minimum corporate tax rate of 15 percent for large multinational companies, applicable to those operating in multiple countries and earning at least 750 million euros in revenue in at least two of the past four years. Shaikh Salman pointed out that implementing this tax would prevent other countries from claiming taxes on profits generated within Bahrain.

On a related note, journalists were recognized at Parliament during a celebration for Bahrain Press Day, which is today, and World Press Freedom Day, celebrated on Saturday. The event was organized by MP Hamad Al Doy, with the presence of Social Development Minister Osama Al Alawi and Parliament’s financial and economic affairs committee chairman MP Ahmed Al Salloom. During the session, Parliament Speaker Ahmed Al Musallam read a statement acknowledging both occasions. GDN Chief Reporter Mohammed Al A’ali received recognition for his long-standing coverage of legislative work since its inception in 2002.