The government of Bahrain has announced a series of initiatives aimed at improving the country’s financial situation and with objective to diversify national revenue in line with its Vision 2030.
Amongst them is a new corporate income tax (CIT) with the proposed rate of 10% on companies’ taxable business profits exceeding 200,000 BHD (approx. 450,000 Eur). It should also apply to companies with annual revenue over 1 million BHD (approx. 2,3 mil. Eur), this revenue threshold ensures that larger businesses (by size of operations/its revenue) are to be captured by the new tax net even if their profit margins are thin and below 200,000 BHD.
The new CIT should be effective from 2027, however it remains to be seen whether by then we will see some changes to it as in case with the new personal income tax in Oman (see our article from … May 2025). Moreover, to protect local employment, key sectors affecting national jobs will be exempt and incentives will be provided to encourage hiring Bahraini workers. We will keep you in the loop in any event. Stay tuned.
Interested to know more about doing business and starting your company in the Bahrain? Our team of agile and experienced experts will provide you with all practical information needed to suit your personal, specific needs. Call us NOW at +971 58 515 2374 or email us at office@alphaprimedwc.ae. We are here for you.
