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Daily Tribune

Global tax local benefit

TDT | Manama An estimated BHD130 million will be added annually to Bahrain's exchequer, when the new 15% global minimum corporate tax comes into play in the Kingdom. Small and medium-sized enterprises (SMEs) in Bahrain will not be directly affected by the tax, as it targets only companies meeting the high revenue threshold. In fact, the policy could help level the playing field by reducing the advantage large multinationals may have gained through tax avoidance. The new tax, part of a global agreement led by the Organisation for Economic Co-operation and Development (OECD), targets multinational enterprises earning over Euro 750 million in at least two of the past four years. Around 300 major companies in Bahrain will fall under this tax regime, according to the Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa. He explained that the move, designed to plug tax revenue losses and curb global tax avoidance, aligns Bahrain with over 140 other countries — including fellow Gulf states — that have signed up to the OECD's global tax framework. 'This tax places Bahrain as a credible, investment-friendly country where companies are encouraged to grow their local presence and support employment,' said the minister. 'It also ensures the Kingdom meets its international commitments and keeps pace with other countries already implementing similar rules.' The decision comes after thorough assessments with international bodies, including the OECD and the International Monetary Fund, to understand its economic impact. By complying with international tax stand - a r d s , t h e Kingdom aims to attract high-quality foreign investment — particularly from companies looking to expand their operations in a compliant and transparent market. Shaikh Salman made the announcement in response to a question by First Deputy Speaker Abdulnabi Salman in parliament. He also thanked lawmakers for their continued collaboration and reaffirmed the government's focus on the goals of Bahrain's Economic Vision 2030.