Bahrain: Economic substance information returns due 31 March 2022

Supporting documents are required when filing an economic substance return.

Due 31 March 2022

The economic substance information returns are due 31 March 2022 for entities that carry out a “relevant activity” or have a “relevant activity” code on their commercial registration.

Activities that trigger an economic substance information return filing obligation include:

  • Distribution and service centre
  • Headquarters
  • Holding company
  • Leasing
  • Shipping
  • Intellectual property
  • Banks
  • Financing companies
  • Insurance
  • Investment firms (CBB categories 1 and 2)
  • Fund administrators

Entities need to:

  • Carry out a review of the activities undertaken (both in form and substance) to confirm if they constitute a “relevant activity” under the Bahrain economic substance rules
  • Assess whether they will need to file an economic substance return
  • Assess the specific substance requirements that would apply, based on the identified relevant activities
  • Assess the core income generating activity for each “relevant activity” category identified
  • Assess whether the entity is being directed and managed from Bahrain
  • Register on the International Tax Information Exchange System (ITIES) portal
  • Complete and submit the economic substance return

There are a number of supporting documents that are required when filing an economic substance return.

Read a March 2022 report [PDF 108 KB] prepared by the KPMG member firm in Bahrain

 

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