Tax data exchange plan

TDT | Manama

Email: mail@newsofbahrain.com

The Financial and Economic Affairs Committee recommended approval of the draft law, with members agreeing that Bahrain should join the updated annex to the multilateral agreement on automatic exchange of financial account data.

The move follows a 2023 revision to the OECD Common Reporting Standard, which expands global tax transparency rules to cover digital assets, new financial instruments and enhanced due diligence requirements.

The bill consists of two articles: one approving Bahrain’s accession to the annex, and another stating it will take effect the day after publication in the Official Gazette.

The Ministry of Finance and National Economy said the finance minister signed the agreement on 13 January 2026, following Cabinet approval in November 2025.

Officials told lawmakers the updated annex is required to align with global standards that now include digital assets and strengthened verification of account holders. Under the revised framework, additional data such as self-declarations, account types and beneficial ownership information will be exchanged.

The National Bureau for Revenue said the agreement is part of Bahrain’s international commitments to combat tax evasion and ensure compliance with global standards, noting that all GCC states operate under the same framework, which must be fully implemented by 2027.