TaxSavvyBH

DMTT provision in the financial statements

Should our 2025 Bahrain accounts include a DMTT provision?

The situation

Advisers recommend assessing the impact of DMTT on financial statements, including provisions and disclosures.

The law

  • Decree-Law No. 11 of 2024 on tax on multinational enterprise groups (DMTT Law): 15% domestic minimum top-up tax for MNE groups with consolidated revenue of EUR 750 million or more in two of the four prior years, from fiscal years starting on or after 1 January 2025

What it means for you

If top-up tax is expected for the year, it is a current tax expense under accounting standards. Estimate it using the same method as advance payments and disclose key judgements. Auditors will ask for the working.

What to do

  1. Estimate the year's top-up.
  2. Book the provision.
  3. Draft disclosures.
  4. Share workings with auditors.

We can do this for youDMTT advance payments, top-up tax return and payment: BHD 6,000

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