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 U.S. dollars) operating in Bahrain. The tax aims to ensure these companies pay at least 15 percent of their profits earned in the kingdom.

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.