Focus on economic and tax legislation

TDT | Manama

Email : editor@newsofbahrain.com

The Shura Council is set to convene its 29th meeting of the third session of the sixth legislative term today to discuss several key legislative proposals aimed at enhancing Bahrain’s financial, economic, and investment landscape.

At the forefront of the agenda is the report of the Financial and Economic Affairs Committee regarding Decree-Law No. (11) of 2024, which pertains to the regulation of tax on multinational enterprises.

The committee has recommended approval of the decree, which is viewed as a crucial step toward supporting the Kingdom’s ongoing efforts to strengthen public revenue, diversify funding sources, and address the fiscal deficit.

Decree

The committee emphasised that the decree supports Bahrain’s economic strategy by ensuring financial stability, promoting sustainable growth, and enhancing tax fairness and social justice.

It also aligns with international standards by establishing a local framework to implement the global minimum tax for multinational enterprise groups, in accordance with the OECD’s base erosion and profit shifting (BEPS) guidelines.

In the same session, the Council will review another report from the Financial and Economic Affairs Committee concerning amendments to Law No. (9) of 2016 on specifications and standards, under Decree No. (2) of 2025.

The draft law proposes updates to the mechanisms for publishing national standards and technical regulations and introduces penalties for the unauthorized use or misrepresentation of such standards.

Proposed amendments

According to the committee, the proposed amendments aim to modernise the regulatory framework by expanding the structure and membership of the National Committee for Standards and Metrology.

This will ensure broader representation across relevant sectors and improve responsiveness to evolving industrial and commercial needs.

The Council will also examine two foreign agreements aimed at enhancing Bahrain’s international investment ties.

The first, submitted under Decree No. (9) of 2025, concerns the ratification of an agreement with the Republic of Korea to encourage and protect investment.

The agreement is designed to stimulate economic cooperation and create favorable conditions for bilateral investment initiatives.

Draft law

Under Decree No. (12) of 2025, the Council will consider a draft law ratifying an agreement with the Sultanate of Oman on the elimination of double taxation and the prevention of tax evasion concerning income taxes.

This agreement seeks to strengthen economic and trade ties between the two countries and foster a more transparent and cooperative tax environment.

The Shura Council’s review of these legislative proposals reflects its continued role in shaping Bahrain’s economic and legal infrastructure to support sustainable development and international competitiveness.