The Ministry of Industry, Commerce and Tourism provided a list of activity codes that are considered to be “relevant activities” as prescribed under the Ministerial Order No. (106) of 2018 for purposes of the economic substance requirements in Bahrain.
An entity that satisfied one or more of the activity codes is required to comply with the economic substance requirements—including the submission of a return within three months from the end of the financial year.
The economic substance returns for entities with a financial year ended 31 December 2019 were due 30 June 2020 (an extended due date). The ministry has started to issue notices of non-compliance to entities that failed to submit their economic substance return by this June 2020 deadline. These entities now need to consider taking steps to comply with their filing requirements before penalties are imposed.
Read an August 2020 report prepared by the KPMG member firm in Bahrain
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