Tax in Bahrain!
Bahrain is making waves in the financial world as it announces its plans to apply corporate tax on companies. With a global push from The Organization for Economic Co-operation and Development (OECD) to set corporate taxes at a minimum rate, Bahrain is committed to following this direction.
This move aims to strengthen financial sustainability and stability in the kingdom, empowering companies to play a greater role in supporting the economy.
The Minister of Finance and National Economy, Sheikh Salman bin Khalifa Al Khalifa, emphasizes Bahrain’s commitment to the OECD initiative. Studies are currently underway to develop the necessary legislation, which will then be presented to the Council of Representatives for approval. By implementing corporate taxes, Bahrain aims to enhance the financial balance and increase the contribution of companies to the economy. This step aligns with Bahrain’s successful economic diversification, with non-oil sectors already accounting for over 83% of the economy.
Bahrain’s decision to apply corporate tax marks a significant milestone in its pursuit of economic stability and growth. By adhering to the global push for minimum corporate tax rates, Bahrain aims to create a level playing field and ensure the sustainability of its financial system. As the necessary legislation is developed and implemented, companies will have an even greater role in supporting Bahrain’s economic landscape. This progressive move sets the stage for a brighter and more balanced financial future.