JV Types Comparison
Key Considerations
📋 JV Agreement Clauses
Define who bears VAT obligations, who registers and files, cost-sharing arrangements, and indemnity for tax penalties. Gross-up clauses for any future corporate tax.
🏗️ Construction JVs
Common in Bahrain infrastructure projects. Unincorporated JVs need clear VAT allocation between partners. Lead contractor typically handles invoicing and VAT returns.
🌐 Cross-Border JVs
Foreign partner contributions — reverse charge on services. Permanent establishment risk for foreign partners. DTT protection and TRC requirements.