GSPU is a leading audit and accounting firm in Bahrain, renowned for delivering comprehensive financial services. Our team of experts ensures excellence and efficiency in auditing, accounting, and financial consulting, helping businesses achieve their financial goals with precision and professionalism. Trust GSPU for unparalleled service in all your financial needs.
Corporate tax in Bahrain is a straightforward yet evolving area within the country’s business landscape. Unlike many countries, Bahrain does not levy a general corporate income tax, making it a highly attractive destination for businesses. This favorable tax environment allows companies to enjoy significant cost savings, which is a major draw for foreign investments and entrepreneurs seeking tax-efficient operations.
However, companies involved in the oil, gas, and petrochemical industries are subject to a corporate tax rate of 46%, the exception to Bahrain’s general tax-free environment. Additionally, the introduction of the VAT in 2019 marked Bahrain’s first step towards broader tax reforms. Currently set at 10%, VAT applies to goods and services, though many essential goods are exempt.
The tax authorities in Bahrain, under the National Bureau for Revenue (NBR), are actively developing a robust regulatory framework. As Bahrain continues aligning with international standards, including the OECD’s tax regulations, businesses should stay vigilant about compliance requirements, especially as global tax dynamics shift.
With the global landscape moving towards more transparency and accountability, companies operating in Bahrain benefit from professional advice to navigate any potential regulatory changes and maintain compliance while capitalizing on Bahrain’s tax advantages.
GSPU also provides top audit and accounting services in Qatar.
