Bahrain: Potential introduction of corporate income tax on large multinational enterprises
Bahrain businesses could expect the introduction of corporate income tax on large multinational enterprises
Potential introduction of corporate income tax on large multinational enterprises
Given the recent comment made by the Minister for Sustainable Development at the 2023 World Economic Forum, Bahrain businesses could expect the introduction of corporate income tax, at least in the first instance, on multinational enterprises (MNEs) with annual consolidated revenues exceeding BHD 342 million from financial years (FYs) commencing 1 January 2024.
Thus, a Bahrain-headquartered MNE or a Bahrain subsidiary/branch of a foreign MNE could start paying corporate income tax in Bahrain from FY 2025 onwards (for FY 2024 filing). The second phase could include a broader corporate income tax on other businesses as well.
Read a May 2023 report [PDF 112 KB] prepared by the KPMG member firm in Bahrain
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