Bahrain's tax landscape is governed by the General Tax Authority (GTA). While there is currently no VAT in Bahrain, foreign investors are subject to Corporate Income Tax (CIT) on their share of profits. Compliance with Dhareeba portal registration and annual auditing is strictly enforced.
Non-compliance leads to financial penalties and blocked government services. Our team ensures your financial governance is transparent and fully aligned with Bahrain law.
GTA Compliance Suite
- 📊Tax Card Registration Mandatory registration on the Dhareeba portal within 60 days of incorporation.
- 🏢Corporate Income Tax (CIT) Standard 10% tax on net profits for Foreign-owned entities.
- 📉Excise Tax Filing Specific taxes on carbonated drinks (50%), energy drinks (100%), and tobacco (100%).
- 📑Withholding Tax (WHT) 5% to 7% WHT on payments to non-residents for services used in Bahrain.
- 🔄Transfer Pricing Master file and Local file requirements for large multinational entities.
- 🧾Contract Reporting Reporting of all government contracts to GTA via Dhareeba system.
Statutory Audit Services
All foreign-owned companies in Bahrain must appoint a locally licensed auditor and submit audited financial statements to the Ministry of Commerce & Industry (MOCI) and GTA annually.
We streamline the audit process to minimize disruption:
- Pre-Audit Health Check: Reviewing your trial balance and ledgers before external auditors arrive.
- Auditor Coordination: Liaison with MOCI-licensed auditors to answer queries and provide evidence.
- Financial Statement Preparation: Drafting statements in accordance with IFRS.
- GTA & MOCI Filing: Uploading approved audits to the Dhareeba and MOCI portals to renew your Tax Card and License.
Key Compliance Deliverables
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Tax CardOfficial GTA tax card proving valid tax standing.
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Audited FinancialsSigned, stamped, and Arabic-translated statements for government filing.
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Transfer Pricing Mast fileRequired documentation if revenue/assets thresholds are met.
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WHT ReturnsTimely submission of Withholding Tax returns.
Frequently Asked Questions
The standard Corporate Income Tax (CIT) rate is 10% of net profits for non-GCC foreign investors.
Yes, typically if capital exceeds QAR 200,000 or revenue exceeds QAR 500,000 (subject to change), you must submit audited financial statements.
As of now, Bahrain has not implemented Value Added Tax (VAT). However, it is part of the GCC framework and may be introduced in the future.
There is no personal income tax on salaries in Bahrain.
WHT is deducted at source from payments made to non-resident parties for services performing in Bahrain. Rates are typically 5% for technical fees, interest, and commissions.