Bahrain Issues Advance Payment Manual for Domestic Minimum Top-Up Tax

Bahrain, 08 July, 2025 : The National Bureau for Revenue (NBR) of Bahrain has released a new Advance Payment Manual on July 2, 2025, outlining the quarterly DMTT (Domestic Minimum Top-up Tax) payment process for multinational groups.

Key Developments:

• Quarterly Advance Payments: Filing Constituent Entities (CEs) of MNE Groups are required to settle DMTT liabilities through quarterly payments.

• Relief Measures: MNEs applying certain reliefs (e.g., CbCR safe harbour, de minimis, or initial activity exclusions) are exempt from advance payments, as their DMTT is deemed NIL.

• Mandatory Updates: If an MNE no longer qualifies for relief, it must update its registration and begin DMTT advance payments.

• Upcoming Deadline: For MNEs with a fiscal year ending December 31, the first and second quarter advance payments are due by August 29, 2025.

Payment Process:

• Log in to the NBR portal.

• Navigate to DMTT → DMTT Returns → Advance Payments.

• Submit estimated quarterly liability and choose the estimation method.

• Payments can be made via Bahrain.bh or Fawateer using the reference number received.

PwC Insight:

MNEs should regularly review their relief eligibility and ensure timely compliance to avoid penalties.