IMC can advise customers about the Tax implications at the pre-incorporation stage and suggest appropriate company structures. We will advise on the Corporate Taxes as well as applicability of trade taxes like Sales Tax, VAT, GST for your industry. We will also advise on the applicable Forms to be filed, to which authorities it should be filed and the frequency of filing. In the case of Import and Export business, we will also advise on the Double tax Treaties and its implications. We can do the hand-holding in the initial phase of establishing the business as well as an on-going basis. IMC has been operating in GCC for over 10 years.
There are no taxes in Bahrain on income, sales, transfer, capital gains or estates, unless a company is involved in operations within the oil and gas sector, in which case it will be subject to a tax rate of 46% on its net profits for each accounting period. Profits from branch income are taxable in Bahrain, at the rate of 46% if they are derived from activities in the oil and gas sector. Profits from branches derived from other activities are not subject to corporate income tax. The introduction of a Corporate Income Tax is presently being considered by the Bahraini Government. However, no official communication has been made by the Bahraini authorities as to when such tax might be implemented.
Currently, there is no Withholding Tax in Bahrain. As such, any payments of interest, royalties or dividends are not subject to Withholding Tax in Bahrain. Again this could change if a Corporate Income Tax regime is introduced as per the above.
There is currently no transfer pricing regime in the Bahrain. If Corporate Income Tax is implemented, Bahrain may implement transfer pricing rules.
The GCC States, including Bahrain, have been studying the implementation of VAT and planning to implement.
There is no Capital Gains Tax regime currently in place in Bahrain. Direct or indirect transfer of shares or assets should not attract any Capital Gains Tax. The potential implementation of a Corporate Income Tax regime could result in Capital Gains Tax.