Bahrain: Proposed VAT payment relief for traders; possible implications of introducing a corporate income tax
Under a proposal, traders would have the option of paying value added tax on imports after selling their products
Proposed VAT payment relief for traders
Under a proposal from Parliament’s Financial and Economic Affairs Committee, traders would have the option of paying value added tax (VAT) on imports after selling their products—instead of having to pay VAT at the time of the customs clearance.
The proposal is to be tabled for approval in the Parliament’s next session.
Would Bahrain introduce a corporate income tax?
Observers are questioning whether Bahrain could introduce a corporate income tax system.
With the United Arab Emirates announcing the introduction of a corporate income tax (effective in mid-2023), there are considerations for businesses if Bahrain were to introduce a corporate income tax regime.
Read a March 2022 report [PDF 105 KB] prepared by the KPMG member firm in Bahrain
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.