04:05 Issue 6

GLOBAL PAYROLL MAGAZINE

97

In Bahrain, a 15 per cent Domestic Minimum Top-Up Tax (DMTT) on the profits of Bahraini subsidiaries of large multinational enterprises has been introduced, effective from January 1, 2025. This marks Bahrain’s first general profit tax beyond the oil and gas sector. The DMTT will apply to multinational groups with consolidated revenues exceeding €750 million across at least two of the previous four years. The move will align Bahrain with the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS) 2.0, specifically under Pillar Two, which aims to ensure a global minimum tax standard for MNEs.

Middle East Briefing explores the DMTT’s implications for

multinational enterprises in Bahrain, its key provisions and compliance requirements. for conducting security assessments.

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