Syed Hussein Al -Qassab
The Chairman of the Financial and Economic Affairs Committee of the Shura Council, Khaled Al -Muscati, affirmed that a law decree on regulating the tax on multinational projects is a pivotal step within the obligations of the Kingdom of Bahrain International, and aims to preserve the rights of the tax state, and prevent revenue leakage into countries that lack transparency.
He stated that there are two main pillars within the comprehensive framework to combat the erosion of the tax container and the transfer of profits, the first focuses on companies operating in the digital economy and providing services to international centers, while the second pillar relates to imposing a minimum global tax by 15% on the profits of multinational companies whose unified revenues exceed 750 million euros annually. He explained that the Kingdom of Bahrain had signed the second pillar, and did not sign the first pillar.
Al -Muscati added that the aim of signing this agreement is to ensure that the government does not lose the tax revenues due, and reduce the opportunities for evading the payment of taxes by companies in other countries that do not have transparency, indicating that the number of multinationals that apply to the provisions of this decree in the Kingdom of Bahrain is 13, and its revenues are expected to reach about 130 million dinars annually.
He stressed that by implementing this tax, the Kingdom of Bahrain will have fulfilled all its international obligations regarding taxes, adding that the Kingdom’s transparency and clear laws will be an additional attraction for investment, stressing that the signing of the agreement establishes a clear and encouraging legal and legislative environment for international companies to work in Bahrain.
For its part, the CEO of the National Revenue Agency, Rana Fakihi, explained that some countries have already started implementing this law since 2024, noting that according to preliminary studies, the number of Bahraini companies covered by the law at the beginning of 7 companies out of 300 companies, indicating that the number currently increased to 18 Bahraini companies until 2025.
She added that the total number of companies on which the provisions of the law apply reached 348 companies until last Thursday, explaining that the expected revenues amount to about 130 million dinars annually by 2026, while the revenues collected in 2025 are estimated at about 40 million dinars only, given that the application of the law will start in August, not from the beginning of the year.
