Latest news with #NationalBureauforRevenue
Daily Tribune
13-05-2025
- Business
- Daily Tribune
Tax strategy eyes BD130m revenue
Shura Council has retrospectively approved a law already in force since January, which imposes a 15 per cent tax on multinational groups operating locally. The measure is expected to raise BD130 million a year and brings the country into step with global rules on corporate profits. The vote, held yesterday, completes the legislative procedure for Decree-Law No. 11 of 2024, issued by the government as part of urgent fiscal measures. The law forms part of an international effort to prevent large firms from shifting profits to jurisdictions with little or no tax. It applies to multinationals with global turnover above €750 million a year. Thirteen foreign-headquartered multinational groups currently operate in Bahrain and fall within the scope of the tax. Model rules Financial committee rapporteur Dr Anwar Al Sada said the tax applies to multinationals based in Bahrain and follows the model rules set by the Organisation for Economic Co-operation and Development. He said the move ensures large businesses pay where they operate. 'This puts all economic activity under the same tax rules,' said Dr Al Sada. 'It plugs a gap and puts Bahrain on the map in terms of international tax cooperation.' Khalid Al Maskati, who chairs the Financial and Economic Affairs Committee, told fellow members the law follows the second of two OECD pillars. 'We're speaking of firms with reach and clout, this stops profits being parked in places with no tax and no scrutiny,' he said. First pillar He added that Bahrain had not signed the first pillar, which targets digital firms selling across borders, but had joined the second, which concerns the minimum rate large groups must pay once they cross a certain threshold. 'The aim is to stop tax revenue from slipping away to countries with no transparency,' said Al Maskati. ''By signing the agreement, we retain what is due to us. And with thirteen multinationals on the books, we estimate BD130 million a year.' Others welcomed the law as a way to bring in income without placing new charges on the public. 'This has a public benefit as well as a financial one,' said Fouad Al Hajji. 'It means the state can pay for schemes the public uses.' Dalal Al Zayed supported the legal footing of the measure and praised the National Bureau for Revenue for drafting its rules. Questions She raised questions about how tax evasion cases would be handled in court. 'Will these cases go to the administrative bench, or will there be a separate court to hear them?' she asked. She also sought clarity on when the right to prosecute such cases runs out. 'The wording says 10 years from the offence, but shouldn't it be ten years from when the act is uncovered?' She also pointed out that parts of the law refer back to 2023, despite it only coming into force in January 2025. Backdated calculations 'Does that mean there will be backdated calculations?' she asked. Responding during the session, Rana Faqihi, chief executive of the National Bureau for Revenue, confirmed that the court in charge of tax evasion cases is the Administrative Court. 'I just wanted to respond to a few of the queries,' she said. 'As for what was raised by member Dalal Al Zayed regarding the court handling these matters, the competent authority under the current system is the Administrative Court.'
Daily Tribune
07-05-2025
- Business
- Daily Tribune
Non-oil sectors reach 86% prosperity as Bahrain targets multinational tax revenue
Bahrain's economy is now largely powered by its non-oil sectors, which make up 86 per cent of its total output, according to the Finance Minister, His Excellency Shaikh Salman bin Khalifa Al Khalifa. Speaking during a parliamentary session yesterday, Shaikh Salman said this shift shows the country is no longer tied to oil in the way it once was, and that plans to widen income sources have been working. He called on MPs to support new efforts to bring in revenue without leaning on ordinary people, especially those earning the least. Push A recent law that targets multinational firms with a base in Bahrain was described as part of this push. The minister stressed the measure was written locally and was not the result of joining an international body. Rather, it mirrors common rules developed in talks between 140 countries, in which Bahrain took part, but the decision to act was its own. Warning He warned that without such a law, profits made by multinationals in Bahrain could be taxed abroad instead, as most major economies already demand at least 15 per cent in corporate taxes. The new rules, he added, were shaped to avoid affecting jobs, with the government consulting more than 100 of the world's biggest companies operating in Bahrain before moving ahead. As of now, 348 multinationals have registered under the new tax scheme, well above the 300 forecast. Of those, 18 are Bahraini firms that meet the global definition of operating in more than one country and making over 750 million in annual turnover. The law's effect on the public purse should become clearer in 2025, with sharper figures expected the year after. The National Bureau for Revenue was said to have had a major hand in preparing the rollout, helped by digital systems that handle both sign-ups and checks. According to Shaikh Salman, Bahrain has the tools and knowhow to apply the rules properly, and tweaks may follow as lessons are learned. Second Yousif Abdulla Hamoud, the Ministry's Undersecretary for Financial Affairs, told MPs that Bahrain placed second among Gulf countries in terms of economic growth, outpacing many larger economies. He noted that some countries barely managed a half per cent rise, while Bahrain fared better. Hamoud also explained that loans taken by public institutions are not listed as part of the country's debt, as they are paid off using the borrowers' own income and backed by their assets. All such requests, he said, are reviewed by the ministry before going ahead.
Daily Tribune
26-03-2025
- Business
- Daily Tribune
BD8.9bln spending, BD6.4bln income, and BD2.5bln deficit in Bahrain's 2025–2026 budget
Bahrain's 2025–2026 budget lays out BD8.9 billion in planned spending against BD6.4 billion in income, leaving a shortfall of BD2.5 billion, fuelled largely by interest payments that account for nearly a quarter of annual outgoings. Revenue for 2025 is expected to reach BD2.92 billion, rising to BD3.46 billion by 2026. Spending will climb alongside this, from BD4.38 billion to BD4.54 billion. The gap, BD1.45 billion in 2025 and BD1.08 billion in 2026, is to be bridged by borrowing, primarily from financial institutions and regional lenders. Income from oil and gas, still the backbone of the treasury, is gradually giving ground to other sources. After allocating funds to the Future Generations Reserve, oil revenue is set at BD1.49 billion in 2025 and BD1.63 billion in 2026. Meanwhile, revenue from tax and services is quickly rising, from BD1.43 billion to BD1.83 billion over the two years. VAT and excise taxes, managed by the National Bureau for Revenue, will generate BD756.9 million in 2025 and BD866.8 million in 2026. Customs duties will provide just over BD112 million annually. Earnings from state-owned firms — including Eskan Bank, Bapco Energies, and Mumtalakat — are estimated at around BD185 million each year. Other ministries are also increasing their contributions. Revenue from the general public services sector will triple from BD114.3 million to BD368.2 million, helped by the Survey and Land Registration Bureau (SLRB), expected to bring in over BD17 million annually. Fees and charges Miscellaneous fees and charges will rise from BD90.5 million to BD343.6 million. Public Order and Safety, led by the Ministry of Interior and Customs, is expected to generate nearly BD200 million each year. Economic ministries — Transportation and Telecommunications, Industry and Commerce, and Works — will collect BD126.7 million in 2025 and BD142.4 million in 2026. Health sector income, including the Supreme Council of Health, will rise from BD43.6 million to BD50.1 million. The Youth, Culture and Media Sector will provide around BD1.4 million annually, with the education sector contributing roughly BD727,000. On the spending side, recurrent expenses dominate, at BD4.1 billion in 2025 and BD4.26 billion in 2026. Allocation Social welfare receives the largest allocation — over BD770 million annually. Retirees will receive BD298 million per year, with BD312.6 million earmarked for the Citizen Account and another BD54 million reserved for rent subsidies. Education is allocated BD354 million each year, covering the Ministry of Education, universities, and training bodies. Health follows closely at BD360 million annually, nearly half going to government hospitals. Defence spending remains steady at BD550.8 million, with Public Order and Safety rising slightly to BD471.6 million in 2026. Spending by economic and infrastructure ministries will rise slightly from BD115.4 million to BD118.9 million, driven by the Ministry of Works and the Economic Development Board. Housing and community amenities will receive around BD13 million each year, and environmental programmes will maintain a steady BD6.8 million. The impact of public debt is stark. Interest payments alone will reach BD1.03 billion in 2025 and BD1.16 billion in 2026 — making it the largest budget line outside social protection. Higher borrowing costs and accumulated debt have created a significant fiscal burden. A contingency reserve of BD119.6 million in 2025 and BD124.1 million in 2026 is also set aside for unexpected expenses. Despite fiscal pressures, infrastructure investment will continue steadily at BD275 million annually. The Ministry of Works will receive BD60 million each year, with BD81 million allocated to housing. Budget The Ministry of Interior is earmarked BD7.4 million per year for its projects, and the health sector will receive BD2.35 million. Education infrastructure funding is set at BD11 million in 2025, rising slightly to BD11.6 million in 2026.
Daily Tribune
25-03-2025
- Business
- Daily Tribune
BD8.9bn Spending, BD2.5bn Deficit in Bahrain's 2025–2026 Budget
Bahrain's 2025–2026 budget lays out BD8.9 billion in planned spending against BD6.4 billion in income, leaving a shortfall of BD2.5 billion, fuelled largely by interest payments that account for nearly a quarter of annual outgoings. Revenue for 2025 is expected to reach BD2.92 billion, rising to BD3.46 billion by 2026. Spending will climb alongside this, from BD4.38 billion to BD4.54 billion. The gap, BD1.45 billion in 2025 and BD1.08 billion in 2026, is to be bridged by borrowing, primarily from financial institutions and regional lenders. Income from oil and gas, still the backbone of the treasury, is gradually giving ground to other sources. After allocating funds to the Future Generations Reserve, oil revenue is set at BD1.49 billion in 2025 and BD1.63 billion in 2026. Meanwhile, revenue from tax and services is quickly rising, from BD1.43 billion to BD1.83 billion over the two years. VAT and excise taxes, managed by the National Bureau for Revenue, will generate BD756.9 million in 2025 and BD866.8 million in 2026. Customs duties will provide just over BD112 million annually. Earnings from state-owned firms—including Eskan Bank, Bapco Energies, and Mumtalakat—are estimated at around BD185 million each year. Other ministries are also increasing their contributions. Revenue from the general public services sector will triple from BD114.3 million to BD368.2 million, helped by the Survey and Land Registration Bureau, expected to bring in over BD17 million annually. Miscellaneous fees and charges will rise from BD90.5 million to BD343.6 million. Public Order and Safety, led by the Ministry of Interior and Customs, is expected to generate nearly BD200 million each year. Economic ministries—Transportation and Telecommunications, Industry and Commerce, and Works—will collect BD126.7 million in 2025 and BD142.4 million in 2026. Health sector income, including the Supreme Council of Health, will rise from BD43.6 million to BD50.1 million. The Youth, Culture and Media Sector will provide around BD1.4 million annually, with the education sector contributing roughly BD727,000. On the spending side, recurrent expenses dominate, at BD4.1 billion in 2025 and BD4.26 billion in 2026. Social welfare receives the largest allocation—over BD770 million annually. Retirees will receive BD298 million per year, with BD312.6 million earmarked for the Citizen Account and another BD54 million reserved for rent subsidies. Education is allocated BD354 million each year, covering the Ministry of Education, universities, and training bodies. Health follows closely at BD360 million annually, nearly half going to government hospitals. Defence spending remains steady at BD550.8 million, with Public Order and Safety rising slightly to BD471.6 million in 2026. Spending by economic and infrastructure ministries will rise slightly from BD115.4 million to BD118.9 million, driven by the Ministry of Works and the Economic Development Board. Housing and community amenities will receive around BD13 million each year, and environmental programmes will maintain a steady BD6.8 million. The impact of public debt is stark. Interest payments alone will reach BD1.03 billion in 2025 and BD1.16 billion in 2026—making it the largest budget line outside social protection. Higher borrowing costs and accumulated debt have created a significant fiscal burden. A contingency reserve of BD119.6 million in 2025 and BD124.1 million in 2026 is also set aside for unexpected expenses. Despite fiscal pressures, infrastructure investment will continue steadily at BD275 million annually. The Ministry of Works will receive BD60 million each year, with BD81 million allocated to housing. The Ministry of Interior is earmarked BD7.4 million per year for its projects, and the health sector will receive BD2.35 million. Education infrastructure funding is set at BD11 million in 2025, rising slightly to BD11.6 million in 2026. Youth, culture, and sport programmes will get BD8 million and BD6.6 million over the two years, supporting the General Sports Authority and Bahrain Authority for Culture and Antiquities. Locally, municipalities are expected to raise BD105 million in 2025 and BD110 million in 2026. Operating expenses are set at BD69.4 million and BD70.2 million, respectively, with BD30 million per year earmarked for local improvement projects, bringing total local spending to about BD100 million annually. Overall, Bahrain's 2025–2026 budget demonstrates ongoing financial strains. Tax revenue is rising, oil remains steady, and infrastructure projects continue. Yet, with rising debt repayments and sustained demand for social spending, balancing the books remains a challenging task.
Daily Tribune
07-03-2025
- Daily Tribune
Fraudster used stolen cards for taxes and crypto
A man convicted of using stolen bank cards to buy digital currencies and settle a company's tax bill is appealing his five-year prison sentence, BD5,000 fine, and permanent deportation. The High Criminal Court of Appeal will rule on the matter on 24 March. The 34-year-old Asian defendant was found guilty of exploiting another person's card in Bahrain to withdraw BD300 and purchase digital assets. He also used stolen bank cards from an Asian country to pay nearly BD50,000 in tax dues for a contracting company. Prosecutors charged him with working alongside unidentified accomplices to unlawfully use another person's electronic signature and seize funds. Access Investigators allege he gained access to the money by interfering with an information technology system. A fraud specialist from an international card company told the court that suspicious transactions were flagged involving bank cards issued in an Asian country. These cards were used via the eGovernment portal to pay tax bills to the National Bureau for Revenue (NBR) on behalf of a contracting firm. When the issuing banks were contacted, they confirmed the payments were fraudulent and had been challenged by the cardholders. Inquiries A police officer testified that inquiries revealed the accused was aware the cards had been stolen but refused to assist in identifying other individuals involved. An accountant at the National Bureau for Revenue stated that a company had paid BD21,056.942 in taxes through 33 online transactions.
