The blast occurred as the victims were trying to retrieve fuel that was leaking from the truck
Bahrain on Sunday announced the introduction of a Domestic Minimum Top-up Tax (DMTT) for multinational enterprises (MNEs) which will come into effect from January 1, 2025.
The new tax, which is in line with the Organisation for Economic Co-operation and Development (OECD) guidelines, is aimed at promoting global economic fairness and transparency.
Implementing the new tax will ensure that the MNEs pay the minimum 15 per cent tax on the profits generated in the Gulf country, hence boosting revenues for the kingdom.
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The decision to implement tax comes on the back of Bahrain’s proactive engagement with the OECD, dating back to 2018 when it joined the Inclusive Framework and endorsed the groundbreaking two-pillar reform. To date, over 140 jurisdictions have signed up for this international tax reform. As part of this two-pillar reform, the OECD established a global minimum corporate tax to ensure large companies pay a minimum tax of 15 per cent on profits in each country where they operate.
Bahrain’s Decree Law No. 11 for the year 2024 will apply to large MNEs operating in the country, with global revenues surpassing the Pillar Two threshold of 750 million euros (Dh3.04 billion; BHD312.11 million). The Gulf country urged eligible businesses to register with the National Bureau for Revenue (NBR) before January 1, 2025.
In January 2022, the UAE’s Ministry of Finance announced the introduction of a 9 per cent federal corporate tax (CT) on the net profits of businesses. The tax became applicable either on June 1, 2023, or January 1, 2024, depending on the financial year followed by the business.
Anurag Chaturvedi, chief executive officer, Andersen, said Bahrain's implementation of corporate tax could have significant implications for its economy and the broader (GCC) region.
“Bahrain has long relied on oil and gas revenues. Introducing corporate tax might signal a shift towards a more diversified economy, potentially encouraging the development of other sectors such as finance, technology, and tourism. The new tax could affect Bahrain's attractiveness as a business hub. Historically, the GCC has been known for its tax-friendly environments. If Bahrain's tax rate is competitive, it might continue to attract businesses. However, if it is perceived as high, it could deter potential investors and drive them to other GCC countries with more favourable tax regimes,” he said.
Chaturvedi added that Bahrain's introduction of corporate tax could shift this dynamic, with businesses weighing tax rates as a key factor in their regional strategies. “This might lead to a re-evaluation of tax policies across the GCC to remain competitive.”
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