Tax Classification
✅ Included: Income taxes, corporate taxes, withholding taxes on distributions received, DMTT itself
✅ Included: Taxes in lieu of generally applicable income taxes, taxes on retained earnings and corporate equity
❌ Excluded: VAT, GST, sales taxes, excise taxes, customs duties, payroll taxes, social insurance
❌ Excluded: Property taxes, stamp duties, capital taxes, wealth taxes, financial transaction taxes
⚠️ Bahrain Impact
Since Bahrain has no income or corporate tax (except DMTT), Bahrain entities typically have zero covered taxes — meaning the Bahrain ETR starts at 0%. The DMTT itself becomes the covered tax that brings the ETR to 15%. Foreign taxes paid (e.g. withholding taxes abroad) can be credited as covered taxes.