Manama : Rana Faqihi, CEO of the National Bureau for Revenue, affirmed that the initiatives approved by the Cabinet, which is chaired by His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, will contribute to strengthening ongoing efforts to ensure Bahraini nationals are the preferred choice for employment through incentives favoring Bahraini employment.
Faqihi explained that the draft corporate income tax law, which will be referred to the legislative authority, proposes a 10% tax on the profits of local companies with annual revenues exceeding one million Bahraini dinars or net annual profits exceeding 200,000 dinars, applied only to profits above the 200,000-dinar threshold.
This measure aims to diversify income sources and is scheduled to come into effect in 2027, subject to consensus with the legislative authority.
The measure also includes an exemption for salaries and allowances paid to Bahraini employees from taxable revenue, providing an incentive for the private sector to hire national talent by offering a competitive tax advantage linked to local employment.
Regarding large multinational corporations (MNEs) operating in Bahrain with global annual revenues exceeding 750 million euros, Faqihi confirmed that these companies, already subject to a 15% tax under existing legislation, will not be required to pay an additional 10% tax. The relevant MNEs will continue to be subject to a 15% tax rate.
