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Bahrain

Taxes

If want to do business in Bahrain, you have to know about taxation for a LLC(WLL) which is the most common company type in Bahrain.

Bahrain does not levy corporate income tax, except for companies engaged in the extraction, production or refining of hydrocarbons. This ranks Bahrain as 1st when compared to corporate tax rate worldwide.

There is no value-added tax or sales tax in Bahrain, which ranks Bahrain as 1st overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will contribute 12.00% to the equivalent of a social security fund and an employee will contribute 7.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 60hours. Contributing to this is the number of yearly labor tax payments, which is 3 in BH.

Thin capitalization restrictions are not in effect. This refers to any type of requirements on a business and the debt-to-asset ratios. Dividends are not taxable in Bahrain. A dividend is a distribution of a portion of earnings of the business, established by the board of directors, to shareholders. Dividends can be issued as shares of stock, cash payments, or other property. Capital Gains are not subject to taxation. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

There are no witholding taxes in Bahrain.This means that payments on dividends, interests, royalties or fees to non-residents are not taxed.
There is no known tax on wealth in Bahrain. There are no known inheritance and real property taxes in BH. Transfer of properties are subject to a stamp duty. There are no popular and well known research and development tax relief in Bahrain.

The above is not tax or legal advice for your company's personal tax obligations. We are able to to refer you to a lawyer in Bahrain who can properly advise you. Click the free consultation button above.

Country details

Bahrain
BHD
Manama
Asia
Arabic (Bahrain), English, Farsi, Urdu
738,004

Tax treaties

Country Type Date Signed
Sri Lanka DTC  2011-07-24
Uzbekistan DTC  2009-06-05
Malaysia DTC  1999-06-14
Mexico DTC  2010-10-10
Ireland DTC  2009-10-29
Algeria DTC  2000-06-11
Netherlands DTC  2008-04-16
Austria DTC  2009-07-02
Seychelles DTC  2010-04-24
Czech Republic DTC  2011-05-24
Greenland TIEA 2011-10-14
Morocco DTC  2000-04-07
Barbados DTC  2012-12-03
Australia TIEA 2011-12-15
Luxembourg DTC  2009-05-06
Pakistan DTC  2005-06-27
Hungary DTC  2014-02-24
Lebanon DTC  2003-08-07
Denmark TIEA 2011-10-14
Turkey DTC  2005-11-14
Canada TIEA 2013-06-04
Iceland TIEA 2011-10-14
Iran DTC  2002-10-19
Belgium DTC  2007-11-04
Bermuda DTC  2010-04-22
Belarus DTC  2002-10-27
Bulgaria DTC  2009-06-26
Georgia DTC  2011-07-18
Singapore DTC  2004-02-18
Philippines DTC  2001-11-07
India TIEA 2012-05-31
United Kingdom DTC  2010-03-10
Turkmenistan DTC  2011-02-09
Norway TIEA 2011-10-14
France DTC  1993-05-10
Korea, Republic of DTC  2012-05-01
China DTC  2002-05-16
Sweden TIEA 2011-10-14
Estonia DTC  2012-10-12
Malta DTC  2010-04-12
Finland TIEA 2011-10-14
Faroe Islands TIEA 2011-10-14
Isle of Man DTC  2011-02-03
Cyprus DTC  2015-03-09

Tax treaties Map

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Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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