Bahrain Corporate Income Tax News Alert

In brief

Bahrain set to introduce Corporate Income Tax

Recent parliamentary discussions were held with representatives from the National Bureau for Revenue and His Excellency the Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa surrounding the implementation of a Corporate Income Tax in Bahrain. No official date has been announced in relation to the implementation of the tax.

In detail

On 11 May 2018, Bahrain joined the OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS). More recently, on 1 July 2021, Bahrain along with over 140 countries, including all of its GCC neighbours, approved a statement providing a framework for international tax reform, which would be implemented in the form of a global minimum tax of 15% (subject to certain conditions being met).

Recent developments

Members of the Parliamentary Financial and Economic Affairs committee held discussions on 22 December 2023 with the National Bureau for Revenue along with His Excellency the Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa . 

National press agency’s later disclosed that sources which took part in the relevant meeting revealed the intention of the government to share a draft corporate tax law with the legislative branch for their review in March of 2024.