Bahrain Updates Global Minimum Tax & VAT Deregistration

The Bahrain National Bureau for Revenue (NBR) published an updated set of FAQs on the Global Minimum Tax, which took effect on January 1, 2025, along with a revised VAT deregistration manual. The updated FAQs and manual, first published in 2023 and now revised, offer more precise instructions for taxable persons, especially regarding VAT deregistration. This was the second essential update publication, following the NBR's update to the VAT registration and VAT transportation guides in mid-September 2025.

Scope of the Updated FAQs and VAT Manual

In January 2025, NBR imposed a 15% minimum tax on large multinational groups with consolidated revenues of at least EUR 750 million in at least two of the past four fiscal years. The updated FAQs cover the tax’s scope, qualifying entities, revenue thresholds, registration requirements and timeframe, exclusions, compliance obligations, penalties for evasion, and conciliation procedures. 

Notably, Bahrain implemented the Global Minimum Tax as the Additional Minimum Tax. Nonetheless, the tax was introduced in accordance with the OECD's Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and Global BEPS Standards, commonly known as GLoBE Model Rules.

In addition to updating FAQs, on December 25, 2025, the NBR released a revised version of the VAT deregistration manual. The main updates to the manual were made to Section 3, which provided a detailed step-by-step guidance on the deregistration process. More specifically, Section 3 clarifies when taxable persons should apply for deregistration and how to complete the deregistration application form.

As stated in the manual, VAT deregistration in Bahrain is conducted online through the NBR portal. Taxable persons who want or need to deregister must log in to the portal using the user ID and password used during registration. It is necessary to emphasize that NBR may request additional information or documentation during the deregistration process.

Conclusion

The revision of the FAQs on the Global Minimum Tax and the VAT deregistration manual shows Bahrain’s dedication to continuously enhancing clarity and compliance for taxable persons. Moreover, the NBR provided practical insights and guidance that should help both large multinational groups and other VAT-registered persons understand their obligations, navigate registration and deregistration processes efficiently, and minimize the risk of errors or penalties.

Source: Bahrain National Bureau for Revenue - Frequently Asked Questions about Additional Minimum Tax, Bahrain National Bureau for Revenue - VAT Deregistration Manual, VATabout