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Bahrain

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 15 April, 2020

General Information

Bahrain has set up a committed National Taskforce "Team Bahrain" to handle the spread of the Covid-19 virus and took measures to guarantee that testing and isolated facilities were set up immediately. Bahrain has one of the highest testing rates per capita on the planet, obtaining the acknowledgment of the World Health Organization for its professional reaction. The Kingdom stands prepared to initiate further actions to avoid the spreading of the virus. Furthermore, the government of Bahrain is supporting individuals and companies through a comprehensive US$11.4bn economic stimulus package.

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

The economic stimulus package raised by the government aims to support businesses and individuals through the following actions;

  • The payment of all insured Bahraini private sector employees for three months starting April 2020 from the Unemployment Fund, following constitutional procedures and in line with the Social Insurance Law.
  • The automatic payment of individuals’ and businesses’ Electricity and Water Authority utility bills for three months from April 2020 (up to the costs incurred during the same period in 2019).
  • Exempting all individuals and businesses from municipal fees for three months from April 2020.
  • Exempting all businesses from government-owned industrial land rental fees for three months from April 2020.
  • Terminating monthly work fees and fees for issuing and renewing work permits for three months from April 2020. 
  • Doubling the Liquidity Support Fund to US$530m.
    Exempting all tourism-related industry from tourism levies for three months from April 2020.
  • Increasing the Central Bank of Bahrain’s loan facilities to US$9.8bn to allow debt instalments to be deferred and extra credit to be extended.

Employment-related measures

(e.g. state compensation schemes, training…)

  • On 2nd April, the Labour Market Regulatory Authority (LMRA) has announced the termination of monthly work fees and fees for issuing and renewing work permits for a period of three months, starting from 1 April 2020.
  • Civil Service Bureau (CSB) President, Ahmed bin Zayed Al-Zayed, announced allowing ministries, entities and government departments to increase the rate of distance work to 70% as a maximum.
  • The redirection of all Tamkeen programmes (semi-autonomous government agency that provides loans and assistance to businesses) to support adversely affected companies, as well as the restructuring of all debts issued by Tamkeen.

Other measures and sources

  • On 26th March, as a part of the precautionary measures to combat the novel coronavirus (COVID-19) coronavirus, Ministry of Interior bans gatherings of more than five individuals on roads, yards, beaches, parks and other public places.
  • 2nd April, Salmaniya Medical Complex (SMC) has launched the home delivery service of prescribed medicines to ensure the health, safety and comfort of the patients.
  • On 9th April, Faeqa bint Said Al-Saleh, Health Minister, issued edict 27 of 2020, suspending the BD7 medical consultation fee, stipulated in edict 2 of 2017 on health fees for non-Bahrainis.

Main sources of information:

Contact us

Tax & Legal: Philippe Norre – pnorre@kpmg.com