Bahrain Tax System

A complete overview of every tax, levy, and contribution in the Kingdom of Bahrain.

Tax Type	Rate	Applies To	Filing
VAT	10%	Most goods & services (with exemptions)	Monthly / Quarterly
Excise Tax	50-100%	Tobacco, energy drinks, soft drinks	Monthly
Corporate Income Tax	0%	Non-hydrocarbon businesses	N/A
Hydrocarbon Tax	46%	Oil & gas exploration/refining companies	Annual
Personal Income Tax	0%	Individual earnings & salary	N/A
Withholding Tax	0%	Dividends, interest, royalties	N/A
Customs Duty	5%	Imported goods (GCC Common Tariff)	Per shipment
GOSI (Employer)	12%	Bahraini employees (employer share)	Monthly
GOSI (Employee)	8%	Bahraini employees (employee share)	Monthly
Municipal Fees	10%	Commercial property rental	Annual

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Bahrain is the only GCC state with 0% corporate income tax for non-hydrocarbon businesses. UAE charges 9%, Saudi 20%, Oman 15%.

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At 10%, VAT is the primary revenue-raising tax. Businesses must understand exemptions, zero-rating, and partial exemption rules.

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Social insurance contributions total 20% for Bahraini employees (12% employer + 8% employee). Expat employees have a reduced rate of 4%.

All Taxes in Bahrain