Bahrain

Tax rates 2012 Bahrain

Corporate tax

Rate

The corporate tax rate of Bahrain is 46% on oil and gas companies, for other companies there is no corporate tax.

Taxable income is therefor only levied for oil and gas companies.

Taxation of dividends

There is no taxation on dividends in Bahrain.

Capital gains

There is no capital gains tax in Bahrain.

Losses

Trading losses may be carried forward indefinitely. Carrybacks of losses is only permitted for oil companies.

Withholding tax

There is no withholding tax in Bahrain.

 

Individual tax

General

Bahrain doesn’t apply any individual taxation. Stamp duty is levied on property transfers, depending on the property value.

Up to BHD 70,000 is 1.5%.

Next level of BHD 120,000 is 2%.

Exceeding this level is 3%.

Taxable income

There is no income tax in Bahrain.

Rates

0%

Capital Gains

There is no capital gains tax in Bahrain.

Deductions

Bahrain doesn’t allow any individual deducations.

Real Estate

There is no real estate tax in Bahrain.

Net Worth Tax

There exist no net worth tax in Bahrain.

Inheritance Tax

There is no inheritance tax in Bahrain.

Social Security

Employed individuals contributes to the social security. The individuals employer contributes 7% of the total contribution. This covers old age, disability, death and unemployment. For expatriate employees, the contribution is 1%, which covers unemployment only.

VAT

There is no VAT applied in Bahrain.

 

Other

Tax year. Calendar year.

Tax treaties. Bahrain currently has 27 treaties.

Filing requirements. Companies are required to file an estimated income tax declaration on or before the 15th day of the third month of the tax year. Tax must be paid in 12 monthly installments.

Registration (for VAT purpose). Not needed due to no VAT.

 

Links

Tax authorities. Ministry of Finance

Consulate

Local Tax Resources

Chamber of commerce

(Online realtor/stock exchange)