National Bureau for Revenue (NBR) chief executive officer Rana Faqihi affirmed that the initiatives approved by the Cabinet, which is chaired by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, will contribute to strengthening ongoing efforts to ensure Bahraini nationals are the preferred choice for employment.
Ms Faqihi explained that the draft corporate income tax law, which will be referred to the legislative authority, proposes a 10 per cent tax on the profits of local companies with annual revenues exceeding BD1 million or net annual profits exceeding BD200,000, applied only to profits above the BD200,000 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 750m euros, Ms Faqihi confirmed that these companies, already subject to a 15pc tax under existing legislation, will not be required to pay an additional 10pc tax. The relevant MNEs will continue to be subject to a 15pc tax rate.
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