Bahrain imposing 15% tax on multinationals to obey OECD
The new international rules seek to address issues of competition arising from the digitalization and globalization of the world economy
A view of the Bahrain World Trade Center in Manama (Getty Images)
Visions of the Gulf as a tax-free haven are rapidly fading.
Bahrain is the latest member of the GCC to introduce corporate taxes, imposing a new 15% profit tax on multinational corporations starting in January.
The new taxes will be limited to the largest companies – whose annual global revenue exceeds $830 million.
The move brings Bahrain in line with new OECD reforms requiring member-nations to ensure large multinational enterprises pay taxes in every country where they operate.
It aims to address issues of international competition arising from the digitalization and globalization of the economy, according to the OECD.