Bahrain

Taxable period

A company's accounting period should normally follow the (Gregorian) calendar year (i.e. 1 January to 31 December).

Tax returns

The law is silent on the due date for the filing of the final income tax statement. However, an estimated income tax statement must be submitted on or before the 15th day of the third month of the taxable year. Where applicable, a taxpayer may also be required to file an amended estimated income tax statement quarterly thereafter, unless a final income tax statement has been provided.

Approved accountants must prepare a certified tax return for the return to be acceptable to the authorities.

Payment of tax

Taxes (based on the initial estimated tax statement filed) are payable in 12 equal monthly instalments. Payments are due starting on the 15th day of the fourth month of the taxable year. Income tax as per the subsequent amended estimated income tax statements or the final income tax statement will form the basis of tax payments for the remainder of the 12 monthly instalments that are yet to be paid. The final payment is due on the 15th day of the third month after the end of the taxable year or the date the final income tax statement is filed, whichever is later.

Any excess income tax paid will be credited and used in the first invoice for income tax following the establishment of the credit by the Minister.

Statute of limitations

The Income Tax Law No. 22 of 1979 does not specify any statute of limitations.

DMTT tax administration 

Appointment of a Filing CE

If there are multiple CEs in Bahrain, a Filing CE must be appointed to be responsible for registering with the NBR, making the advance payment, filing the return, and ensuring compliance with other tax requirements.

DMTT registration

The Filing CE must apply for registration with the NBR within 120 days of the transition year's start, or 30 days following the effective date of the DMTT Law (1 January 2025) if the revenue test is met for two of the past four fiscal years.

The DMTT registration requires submission of details on the MNE, including ownership structure, fiscal year, financial data, disclosures in relation to currency, whether it is expected any DMTT reliefs will be claimed (i.e. safe harbours or de minimis), and consent from relevant entities. The NBR will issue a registration certificate once accepted.

The Filing CE can modify the registration details, including the eligibility for DMTT relief, within 30 days from the date of change.

Advance tax payments

Advance payments of the DMTT must be made on a quarterly basis, with each payment due within 60 days after the end of the quarter. However, for the first advance payment in the transition year at the time of entry into force of the DMTT Law, the payment is due on the same date as the second advance payment.

The Filing CE can choose between the ‘Prior Year Method’ or the ‘Current Year Method’ to calculate advance payments. The election must be made by the due date of the first advance payment and is irrevocable for the fiscal year. For this purpose, the Prior Year Method shall be based on a reasonable estimate of the prior year's tax, adjusted for the current period, and the Current Year Method shall be based on an estimate of the current year's tax due for the period, minus any previous payments.

The Filing CE must maintain documentation showing how advance payments were calculated for a period of five years following the end of the fiscal year to which they relate and provide it to the NBR upon request. Penalties may be imposed for failure to submit such documentation and evidence. 

The balance of tax due must be paid within 15 months of the end of the fiscal year.

Tax returns

The Filing CE must submit a tax return within 15 months of the fiscal year’s end, including financial details and supporting documents.