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Bahrain
Overview
Last reviewed - 20 March 2024The 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 1.57 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 4.9% in 2022, which is the highest growth rate recorded since 2013.
Bahrain implemented the first Free Trade 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 (%) |
10 |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
NA |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
NA |
| Headline individual capital gains tax rate (%) |
NA |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
NA |
| Headline gift tax rate (%) |
NA |
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