| BAHRAIN |
| KnowYourCountry |
A. Taxes payable
No form of personal, corporate, withholding or value added tax is applicable In Bahrain.
There is no personal tax except municipal tax of 10% on the monthly rental of residential
and business property. In addition, a 5% government levy on gross turnover is imposed on
hotel services and entertainment.
Customs (import) duties are generally levied at a rate of 5% but there are many items such
as medicines, most food products, capital goods and raw material for industries which are
exempt from duty. After implementation of the new uniform customs tariff which became
effective on 1 January 2003, all non-Gulf Co-operation Council (GCC) products, except for
those exempted, are subject to 5% customs duty. However, the products of the GCC
countries shall enter into each others' markets free of customs duties.
Products are considered as originating in a GCC country if the value added to such
product in the said country is more than 40% of the value of the product in question and if
the factory that manufactured the product is at least 51% owned by GCC nationals.
In the event of re-export to non-GCC countries, a customs deposit has to be made and this
will be refunded when proof of re-export is given to the authorities. In the event of re-export
to GCC countries, customs duty at 5% will be levied at the first point of entry. The
provisions of the GCC Customs Union, which was implemented from 1 January 2003, will
be applicable.
The Free Trade agreed between Bahrain and the US was signed on 14 September 2004
in the Kingdom. Bahrain has entered into avoidance of double taxation treaties with
several countries, notably, Algeria, Belarus, Brunei, Bulgaria, China, Czech Republic,
Egypt, France, Iran, Jordan, Lebanon, Morocco, Philippine, Singapore, Sri Lanka, Syria,
Thailand, Turkey, Turkmenistan, Uzbekistan, and Yemen.
_______________________________________________________________________
No form of personal, corporate, withholding or value added tax is applicable In Bahrain.
There is no personal tax except municipal tax of 10% on the monthly rental of residential
and business property. In addition, a 5% government levy on gross turnover is imposed on
hotel services and entertainment.
Customs (import) duties are generally levied at a rate of 5% but there are many items such
as medicines, most food products, capital goods and raw material for industries which are
exempt from duty. After implementation of the new uniform customs tariff which became
effective on 1 January 2003, all non-Gulf Co-operation Council (GCC) products, except for
those exempted, are subject to 5% customs duty. However, the products of the GCC
countries shall enter into each others' markets free of customs duties.
Products are considered as originating in a GCC country if the value added to such
product in the said country is more than 40% of the value of the product in question and if
the factory that manufactured the product is at least 51% owned by GCC nationals.
In the event of re-export to non-GCC countries, a customs deposit has to be made and this
will be refunded when proof of re-export is given to the authorities. In the event of re-export
to GCC countries, customs duty at 5% will be levied at the first point of entry. The
provisions of the GCC Customs Union, which was implemented from 1 January 2003, will
be applicable.
The Free Trade agreed between Bahrain and the US was signed on 14 September 2004
in the Kingdom. Bahrain has entered into avoidance of double taxation treaties with
several countries, notably, Algeria, Belarus, Brunei, Bulgaria, China, Czech Republic,
Egypt, France, Iran, Jordan, Lebanon, Morocco, Philippine, Singapore, Sri Lanka, Syria,
Thailand, Turkey, Turkmenistan, Uzbekistan, and Yemen.
_______________________________________________________________________
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Since 1994, the PKF network of independent member firms, which is administered by
PKF International Limited, has produced the PKF Worldwide Tax Guide (WWTG). The
report below is extracted from the 2010 WWTG and reproduced with the kind permission of
PKF International Limited. Before continuing, please read the Important Disclaimer below.
________________________________________________________________________
IMPORTANT DISCLAIMER:
This report should not be regarded as offering a complete explanation of the taxation matters that are
contained within this report.
This report has been made available on the express terms and understanding that the publishers and the
authors are not responsible for the results of any actions which are undertaken on the basis of the
information which is contained within this report, nor for any error in, or omission from, this report.
The publishers and the authors expressly disclaim all and any liability and responsibility to any person,
entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of
the contents of this report.
Accordingly no person, entity or corporation should act or rely upon any matter or information as contained
or implied within this report without first obtaining advice from an appropriately qualified professional
person or firm of advisors, and ensuring that such advice specifically relates to their particular
circumstances.
PKF International is a network of legally independent member firms administered by PKF International
Limited (PKFI). Neither PKFI nor the member firms of the network generally accept any responsibility or
liability for the actions or inactions on the part of any individual member firm or firms.
________________________________________________________________________
PKF International Limited, has produced the PKF Worldwide Tax Guide (WWTG). The
report below is extracted from the 2010 WWTG and reproduced with the kind permission of
PKF International Limited. Before continuing, please read the Important Disclaimer below.
________________________________________________________________________
IMPORTANT DISCLAIMER:
This report should not be regarded as offering a complete explanation of the taxation matters that are
contained within this report.
This report has been made available on the express terms and understanding that the publishers and the
authors are not responsible for the results of any actions which are undertaken on the basis of the
information which is contained within this report, nor for any error in, or omission from, this report.
The publishers and the authors expressly disclaim all and any liability and responsibility to any person,
entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of
the contents of this report.
Accordingly no person, entity or corporation should act or rely upon any matter or information as contained
or implied within this report without first obtaining advice from an appropriately qualified professional
person or firm of advisors, and ensuring that such advice specifically relates to their particular
circumstances.
PKF International is a network of legally independent member firms administered by PKF International
Limited (PKFI). Neither PKFI nor the member firms of the network generally accept any responsibility or
liability for the actions or inactions on the part of any individual member firm or firms.
________________________________________________________________________
|
20 September 2011 - Peer review report
focusing on legal frameworks which allow for
transparency and exchange of tax information
now available.
Key Findings:
The legal and regulatory framework for the
exchange of information is essentially in place
in Bahrain, though some areas are in need of
improvement. The report identifies deficiencies
and makes recommendations relating to the
uncertainty of the obligation for financial trusts
to keep documents related to accounting
records, confidentiality rules related to financial
trusts, some uncertainty related to the power to
access information and the requirement in all
cases to gain consent of taxpayers before
providing information to foreign authorities.
Bahrain has signed exchange of information
agreements with 26 jurisdictions that meet the
standards.
To view report click here
______________________________________
focusing on legal frameworks which allow for
transparency and exchange of tax information
now available.
Key Findings:
The legal and regulatory framework for the
exchange of information is essentially in place
in Bahrain, though some areas are in need of
improvement. The report identifies deficiencies
and makes recommendations relating to the
uncertainty of the obligation for financial trusts
to keep documents related to accounting
records, confidentiality rules related to financial
trusts, some uncertainty related to the power to
access information and the requirement in all
cases to gain consent of taxpayers before
providing information to foreign authorities.
Bahrain has signed exchange of information
agreements with 26 jurisdictions that meet the
standards.
To view report click here
______________________________________
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| Last Updated: 6 April 2012 |