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Bahrain Introduces 15% Minimum Tax on Multinational Enterprises (MNEs)
02/09/2024The Kingdom of Bahrain has recently introduced a minimum tax of 15% on Multinational Enterprises (MNEs). The legislation passed incorporates many terms and definitions from the OECD’s model rules on Pillar 2.
MNEs with revenues of or exceeding EUR 750 million in their consolidated financial statements for at least two out of the four preceding years will be required to pay the 15% minimum tax.
MNEs are defined as groups that include at least one entity or a permanent establishment outside the jurisdiction of the Ultimate Parent Entity. Sovereign wealth funds are specifically excluded from this definition.
As a next step, MNEs with presence in Bahrain should conduct a detailed analysis of this legislation to assess its impact.
For assistance, feel free to reach out to us.