Middle East · Tax guide
Bahrain
Bahrain has no general corporate income tax: only crude oil companies pay income tax, at 46%. It charges VAT at 10%, and since 2025 large multinational groups pay a domestic minimum top-up tax. Taxes are administered by the National Bureau for Revenue (NBR).
At a glance
- VAT
- 10%
- Crude oil companies
- 46%
- Global minimum tax
- 15%
Registration above BHD 37,500 a year
Income tax on exploration and production
Groups with revenue of €750 million or more
No general income tax
Bahrain does not tax the profits of ordinary companies or the income of individuals. The exception is crude oil exploration and production, taxed at 46% of net profits; gas activities fall outside this rate.
VAT
VAT is charged at 10%, with zero-rating for basic foods, healthcare, education, local transport, new buildings and oil and gas, and exemptions for most financial services and residential property.
Registration is mandatory once annual supplies exceed BHD 37,500 and voluntary above BHD 18,750. Larger businesses file monthly; others quarterly.
Global minimum tax
From 2025 Bahrain applies a domestic minimum top-up tax at 15% to members of multinational groups with revenue of €750 million or more in two of the last four years. For many groups this is the first profit tax they pay in Bahrain.
Key dates
- Monthly or quarterlyVAT return and payment, by the end of the month after the period
Figures and sources
6 figures- Income tax on companies exploring for or producing crude oil46%Checked against the official source
- VAT standard rate10%Checked against the official source
- Annual supplies above which VAT registration is mandatoryBHD 37,500Checked against the official source
- Domestic minimum top-up tax rate15%Checked against the official source
- Group revenue (in two of the last four years) for the domestic minimum top-up tax€750 millionChecked against the official source
- Annual supplies or expenses above which voluntary registration is allowedBHD 18,750Checked against the official source
Indicative only. This assessment is a high-level overview of tax obligations in Bahrain based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a Bahraini tax adviser before making compliance decisions.