Bahrain’s most popular business sectors are:

• Real Estate Market in Bahrain – The real estate market in Bahrain is one of the most ever-growing industries attracting investors to inject funds more and more.
• Food and Drink Industry – The food and drink industry is one of the substantial components of the economy of Bahrain.
• Biggest Industries in Bahrain: Chemicals- One of the most popular international industries that many countries are trying to develop, the chemicals sector has contributed dramatically to Bahrain’s economy.
• Manufacturing Industry- The manufacturing industry has contributed to Bahrain’s economy as it has adopted a way to face the collapse of oil prices —especially during the pandemic, by establishing a number of factories to increase the volume of exports.
• Oil and Gas- Bahrain is home to 124 million barrels of oil which is a little bit. So, the country is thriving to increase the investment in mining and boost this sector to increase productivity.

Valcorp provides full scope of accounting and tax advice services in Bahrain with an international perspective.

Along with competitive costs, easy access to the rest of the Middle East, and a well-established business infrastructure, you will find that the Kingdom of Bahrain has a great deal of experience in understanding the needs of foreign businesses and responding to them. Bahrain regards foreign investment as key to its Economic Vision 2030 long-term plan for improving the competitiveness of our economy, creating skilled jobs for Bahrainis and enhancing living standards.

Corporate Income Tax in Bahrain:

There are no taxes in Bahrain on income, sales, capital gains, or estates, with the exception, in limited circumstances, to businesses (local and foreign) that operate in the oil and gas sector or derive profits from the extraction or refinement of fossil fuels (defined as hydrocarbons) in Bahrain. For such companies, a tax rate of 46% is levied on net profits for each tax accounting period, irrespective of the residence of the taxpayer.

Value Added Tax in Bahrain:

The general VAT rate was 5% from 1 January 2019 until 31 December 2021. From 1 January 2022, the rate was increased to 10%,

but transitional provisions apply in certain circumstances under which the 5% rate can apply on certain supplies made after 1 January 2022 until 31 December 2022 at the latest. The standard rate applies to most goods and services, with a number of exceptions where certain goods and services may be subject to a 0% rate or be exempted from VAT.

General information on tax in Bahrain:

There is no general taxation on the personal income of individuals or corporations and no withholding taxes, and no estate or gift taxes in Bahrain.

Tax year:

As there are no income tax obligations in Bahrain, there is subsequently no tax year.