Bahrain

Overview

Last reviewed - 16 August 2020

The Kingdom of Bahrain is an archipelago of 33 islands covering a total area of 741 square kilometres in the Arabian Gulf, located east of the Kingdom of Saudi Arabia and northwest of Qatar. The capital of Bahrain is Manama, and the population of Bahrain is approximately 1.41 million. The official language of Bahrain is Arabic, and the currency is the Bahraini dinar (BHD).

Bahrain was one of the first countries in the Middle East to discover crude oil. Though oil revenues continue to provide a sizeable proportion of Bahrain’s gross domestic product (GDP), the country is expanding in the financial services, real estate and construction, and manufacturing sectors. Bahrain’s GDP grew by 2.5% in 2017 despite a stagnation of the oil sector.

Bahrain implemented the first Free Trading Agreement with the United States in August 2006. Bahrain is also a member of the Cooperation Council for the Arab states of the Gulf (GCC).

PwC has been practising in Bahrain since the mid-1970s, specialising in Assurance, Business and Financial Advisory Services, and Tax Services. PwC was the first professional firm to establish a dedicated tax team in Bahrain that provides international structuring, cross-border merger and acquisition (M&A), investment management, real estate, and Islamic Finance services.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

46 for oil corp.'s;

0 for other corp.'s

Corporate income tax (CIT) due dates
CIT return due date

The law is silent on the due date for the filing of the final CIT return. However, the initial estimated CIT return should be filed by the 15th day of the third month of the taxable year. Amended estimated CIT returns are filed on a quarterly basis thereafter, unless a final CIT return has been submitted.

CIT final payment due date

15th day of the third month after the end of the taxable year or the date the final CIT return is filed, whichever is later.

CIT estimated payment due dates

12 monthly instalments starting on the 15th day of the fourth month of the taxable year.

Personal income tax (PIT) rates
Headline PIT rate (%)

NA

Personal income tax (PIT) due dates
PIT return due date

NA

PIT final payment due date

NA

PIT estimated payment due dates

NA

Value-added tax (VAT) rates
Standard VAT rate (%)

5

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

NA

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

NA

Individual capital gains tax rate (%)

NA

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.