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

 

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