Bahrain: Economic substance return due 31 March 2021

Bahrain: Economic substance return due 31 March 2021

The deadline for entities to file an economic substance return is 31 March 2021 (for the financial year ended 31 December 2020).


The Organisation for Economic Cooperation and Development (OECD) supported economic substance rules along with the base erosion and profit shifting (BEPS) framework. Bahrain joined the OECD’s inclusive framework on BEPS and also effectively implemented measures relating to the economic substance rules.

The economic substance rules in Bahrain apply to entities (corporations, branches, and partnerships) that conduct one or more of the following relevant activities:

  • Distribution and service centre
  • Headquarters
  • Holding company
  • Leasing
  • Shipping
  • Intellectual property (IP)
  • Banks
  • Financing companies
  • Insurance
  • Certain investment firms
  • Fund administrators

Read a March 2021 report [PDF 163 KB] prepared by the KPMG member firm in Bahrain

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