Director Tax Responsibilities
🛡️ VAT Obligations
Directors are personally liable for unpaid VAT if they knowingly authorize non-payment. This includes failure to file returns, failure to register, and diversion of company funds when tax is due.
📋 Annual Filings
MOIC requires annual CR renewal, audited financial statements (for BSC companies), and UBO register updates. Failure to file — CR suspension after 3 months, cancellation after 6 months.
⚖️ Compliance Culture
Board must establish a tax compliance framework. Delegate to qualified personnel but retain oversight. Regular reporting to board on tax risks. Document tax decisions and rationale.
Governance Code
The Bahrain Code of Corporate Governance (2018) requires BSC (public) companies to have audit committees, maintain internal controls, and ensure transparent financial reporting. While primarily for listed companies, the principles are increasingly applied to large private companies — especially those in scope for DMTT.