Tax and compliance in Bahrain

Snapshot

Bahrain has no general corporate income tax for most businesses as of 11 October 2025, though oil and gas activity is taxed and a 15 percent domestic minimum top up tax applies to large multinational groups for years from January 2025. Value added tax is 10 percent. A broader corporate income tax has been proposed but is not yet in force. Verify the current position.

Corporate income tax: No general corporate income tax for most businesses as of 11 October 2025. Oil and gas activity is taxed. A broader corporate income tax has been proposed but is not yet in force.
Value added tax: 10 percent standard rate since January 2022, with mandatory registration above BHD 37,500 in annual supplies.
Large group tax: A 15 percent domestic minimum top up tax applies to large multinational groups for years from January 2025.
Administered by: The National Bureau for Revenue for VAT and the domestic minimum top up tax.

Fees and features as of 11 October 2025Last reviewed 11 October 2025

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

For most businesses Bahrain still has no general corporate income tax as of 11 October 2025, which is the headline point, though that may change. Value added tax has applied at 10 percent since January 2022 and is run by the National Bureau for Revenue, with mandatory registration once annual taxable supplies pass BHD 37,500. Large multinational groups with consolidated revenue of at least EUR 750 million are within a 15 percent domestic minimum top up tax for financial years starting on or after 1 January 2025. A broader corporate income tax has been proposed and referred to the legislative authorities, but it is not yet in force, so check the current status. Tax rules are technical, so figures here are shown as of 11 October 2025 and you should confirm your position with the National Bureau for Revenue or a qualified adviser.

How business tax and compliance work in Bahrain

Bahrain has historically been a low tax base for companies. As of 11 October 2025 there is no general corporate income tax on most businesses, while oil and gas activity is taxed separately. The main everyday tax for businesses is value added tax, and the newest layer affects only the largest multinational groups. Alongside tax, businesses carry company and banking compliance duties tied to the Commercial Registration and to anti money laundering rules supervised by the Central Bank of Bahrain. This page summarises the position and is information, not advice.

Value added tax

Value added tax has applied at a standard rate of 10 percent since January 2022 and is administered by the National Bureau for Revenue. Registration is mandatory once annual taxable supplies exceed BHD 37,500, with voluntary registration available from BHD 18,750. Registered businesses charge VAT, file periodic returns, and keep records. As of 11 October 2025. Confirm the thresholds and filing dates with the National Bureau for Revenue.

Corporate income tax and large groups

Most businesses do not pay a general corporate income tax as of 11 October 2025, although oil and gas companies are taxed. Bahrain has introduced a 15 percent domestic minimum top up tax that applies to large multinational groups with consolidated revenue of at least EUR 750 million, for financial years starting on or after 1 January 2025, with returns filed to the National Bureau for Revenue. A broader corporate income tax has been proposed and referred to the legislative authorities, but it is not yet in force, so treat it as a proposal and check the current status.

Company and banking compliance

Businesses must keep the Commercial Registration current, hold a separate business account under the rule that took effect in May 2025, and integrate an electronic payment method. Banks apply anti money laundering and know your customer checks under Central Bank of Bahrain rules, and employers handle social insurance and wage protection duties. Confirm how each rule applies to your business with the relevant authority or a qualified adviser.

What to check before you act

When planning tax and compliance in Bahrain, check these points, as of 11 October 2025. Verify with the provider

Whether your annual taxable supplies pass the VAT registration threshold of BHD 37,500, and your filing dates.
Whether your group is within the 15 percent domestic minimum top up tax, which targets large multinational groups.
That your Commercial Registration is current, your separate business account and electronic payment method are in place, and your records meet anti money laundering rules.

How to compare your options

Confirm your VAT position and registration status with the National Bureau for Revenue.
Check whether any new corporate income tax or the domestic minimum top up tax applies to your business or group.
Keep your registration, banking, and records compliant, and confirm details with the relevant authority or a qualified adviser, because rules change.

We do not list a business account in our compare panel that is confirmed available to companies registered in Bahrain as of 11 October 2025. Local licensed banks such as National Bank of Bahrain, Bank of Bahrain and Kuwait, Bank ABC, and Ahli United Bank accept business customers in Bahrain. Confirm current documents, fees, and eligibility with the provider before applying.

Questions about tax and compliance in Bahrain

Does Bahrain have corporate income tax?

For most businesses there is no general corporate income tax as of 11 October 2025, though oil and gas activity is taxed. A 15 percent domestic minimum top up tax applies to large multinational groups for years from January 2025, and a broader corporate income tax has been proposed but is not yet in force. Verify the current position with the National Bureau for Revenue.

What is the VAT rate in Bahrain?

Value added tax has applied at a standard rate of 10 percent since January 2022, administered by the National Bureau for Revenue. Registration is mandatory once annual taxable supplies exceed BHD 37,500, with voluntary registration from BHD 18,750. As of 11 October 2025. Confirm the thresholds with the National Bureau for Revenue.

What is the domestic minimum top up tax in Bahrain?

It is a 15 percent minimum tax on the Bahrain profits of large multinational groups with consolidated revenue of at least EUR 750 million, for financial years starting on or after 1 January 2025, with returns filed to the National Bureau for Revenue. As of 11 October 2025. Most smaller businesses are outside its scope. Confirm whether it applies to your group.

What banking compliance applies to businesses in Bahrain?

Businesses must keep the Commercial Registration current, hold a separate business account under the rule that took effect in May 2025, and integrate an electronic payment method, while banks apply anti money laundering and know your customer checks under Central Bank of Bahrain rules. As of 11 October 2025. Confirm how the rules apply to you.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 11 October 2025. Confirm current terms with the provider before applying.