Dec. 30, Manama (BNA): The initiatives approved by the Cabinet, which is led by His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, will strengthen ongoing efforts to guarantee Bahraini nationals are the preferred choice for employment through incentives favoring Bahraini employment, according to Rana Faqihi, CEO of the National Bureau for Revenue.
NBR CEO highlights Cabinet-approved initiatives aimed at enhancing diversification of revenue sources
According to Faqihi, a 10% tax on the profits of local businesses with yearly revenues exceeding one million Bahraini dinars or net annual profits exceeding 200,000 dinars—applied only to profits above the 200,000-dinar threshold—is proposed in the draft corporate income tax law, which will be referred to the legislative authority.
Subject to agreement with the legislative body, this policy, which attempts to diversify income sources, is set to take effect in 2027.
By delivering a competitive tax benefit associated with local hiring, the legislation also exempts salary and benefits paid to Bahraini employees from taxable revenue, encouraging the private sector to hire domestic talent.
Faqihi indicated that major multinational firms (MNEs) operating in Bahrain with annual global revenues surpassing 750 million euros will not be liable to an additional 10% tax, as they are already subject to a 15% tax under current legislation. The 15% tax rate will still apply to the applicable MNEs.
