Bahrain has long been a tax-friendly destination, attracting businesses and investors with its zero corporate tax policy, except for oil and gas companies. However, with the global push towards fair tax practices under the OECD’s Pillar Two framework, Bahrain has introduced the Domestic Minimum Top-Up Tax. This move ensures that multinational enterprises with revenues exceeding EUR 750 million are subject to a minimum effective tax rate of 15%. While this marks a significant shift in the corporate tax landscape, Bahrain remains committed to retaining its competitive edge as a business hub. The introduction of this tax not only aligns Bahrain with international standards but also enhances transparency and compliance. Businesses operating in Bahrain must now adapt their tax strategies to meet these new requirements, which could involve restructuring and increased reporting obligations. Despite the changes, Bahrain’s strategic location, business-friendly policies, and absence of personal income tax continue to offer unmatched advantages. For businesses navigating this transition, seeking expert guidance is essential to ensure compliance and optimize tax planning. GSPU, Bahrain's top audit and accounting firm, provides the expertise needed to adapt seamlessly to the evolving framework of corporate tax in Bahrain, enabling businesses to thrive in the changing economic environment.

GSPU also provides top audit and accounting services in Qatar.