Bahrain: Business Environment
All reasonable and justifiable costs of production and exploration of products sold during the current taxable year are deductible for tax purposes, if these expenses have not been deducted elsewhere in calculating net taxable income.
All taxes and duties not imposed by the Bahrain income tax law - such as customs duties - can also be deducted from taxable income.
Unutilised losses may be carried forward indefinitely and deducted up to an amount equivalent to the net income. Carryback of losses is not permitted.
Bahrain | Middle East & North Africa | United States | Germany | |
Number of Payments of Taxes per Year | 3.0 | 20.8 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 22.5 | 195.1 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 13.8 | 32.1 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Individual income tax | Bahrain does not apply any personal income tax |
Social security contributions paid by employees | 3% (1% for expat employees), calculated on a maximum monthly earning of BHD 4,000 |
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Latest Update: November 2023