Top income tax
None
None system
Corporate tax
None
VAT
10.0%
standard rate
Tax residency
—
49 tax treaties
Bahrain tax profile
Data year: 2026
- Tax system
- None No personal income tax or general corporate income tax on business profits. Hydrocarbon exploration, production and refining profits are taxed at 46%. Domestic minimum top-up tax (DMTT) applies from financial years starting on or after 1 January 2025 to Bahrain constituent entities of multinational groups with consolidated global revenue of at least EUR 750 million in at least two of the four preceding years, ensuring a 15% minimum effective tax rate where required under Pillar Two. Cabinet referred draft legislation for a broad 10% corporate income tax (0% on taxable income up to BHD 200,000, 10% above) for resident businesses meeting BHD 1 million revenue or BHD 200,000 taxable-income thresholds; if enacted, it is expected to take effect from 1 January 2027 and interact with DMTT for in-scope groups.
- Top PIT rate
- No Income Tax
- Corporate tax rate
- No Corporate Tax
- VAT
- 10.0%
- Capital gains tax
- No Capital Gains Tax
- Social security (employee)
- 8.0%
- Social security (employer)
- 18.0%
- Social security cap (annual)
- BHD 48,000
- Dividend withholding
- 0.0%
- Interest withholding
- 0.0%
- Royalty withholding
- 0.0%
- Treaty count
- 49
Tax residency
- Residency rules
- No personal income tax, so individual tax residency is mainly relevant for VAT, future corporate tax and treaty claims. Businesses follow VAT registration rules (generally mandatory registration above BHD 37,500 annual taxable supplies for Bahrain-resident traders).
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
Sources
- PwC Bahrain — overview (accessed Oct 9, 2026) No general PIT/CIT; 46% hydrocarbon CIT; 10% VAT; DMTT; WHT NA
- PwC Bahrain — corporate other taxes (accessed Oct 9, 2026) VAT 10%, SIO 18%/3% employer and 8%/1% employee with BHD 4,000 monthly cap
- PwC Bahrain — individual other taxes (accessed Oct 9, 2026) SIO contribution split 26% Bahraini / 4% expatriate
- PwC Bahrain — corporate withholding and treaties (accessed Oct 9, 2026) No domestic WHT; DTT counterparty list
- Kingdom of Bahrain — VAT portal (accessed Oct 9, 2026) 10% standard VAT from 1 January 2022; NBR administers VAT