MANAMA - Bahrain announced on Sunday a new 15 percent domestic minimum top-up tax for large multinational companies.

The tax, which aligns with Organization for Economic Co-operation and Development (OECD) guidelines, will be effective from January 1 next year, the Bahrain News Agency reported.

It will apply to multinational enterprises with global revenues exceeding 750 million euros ($829 million) operating in Bahrain. The tax aims to ensure these companies pay at least 15 percent of their profits earned in the kingdom.

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This move continues Bahrain's cooperation with the OECD, which started in 2018 when the country joined the inclusive framework and supported the two-pillar reform, which includes a global minimum corporate tax to ensure large multinationals pay a 15 percent tax on profits in each country where they operate.