Case Studies

Multinational Bank — VAT Implementation

Bahrain · 2022-2023

Challenge

A regional bank with 15 branches needed to implement VAT across complex financial products — many of which fell into exempt or partially exempt categories. Their existing systems could not handle mixed-supply calculations.

Solution

We conducted a full product classification review, designed a partial exemption methodology approved by NBR, and implemented automated VAT calculations within their core banking system.

Result

Successfully recovered BHD 2.1M in input tax through optimized partial exemption methods. Achieved 100% on-time filing compliance and zero penalties across 24 filing periods.

Property Developer — GCC Restructuring

Bahrain, UAE, Saudi Arabia · 2024

Challenge

Following the UAE's corporate tax introduction, a Bahraini property developer operating across the GCC needed to restructure its holding and operating entities to minimize the combined tax burden while maintaining operational efficiency.

Solution

We designed a new group structure with Bahrain as the regional HQ, leveraging bilateral DTAs and UAE free zone benefits. We also optimized intercompany financing and management fee arrangements.

Result

Achieved BHD 850K in annual tax savings through optimized structure, reduced effective tax rate from 12% to under 4%, and established robust transfer pricing documentation for all intercompany flows.

SaaS Company — Transfer Pricing Defense

Bahrain, Global · 2025

Challenge

A global SaaS company with its MENA hub in Bahrain received a BHD 3.2M transfer pricing assessment from a foreign tax authority challenging the arm's length nature of its IP licensing and management service fees.

Solution

We prepared a comprehensive economic defense, including updated benchmarking studies, detailed functional analysis, and demonstrated genuine economic substance in Bahrain through staff, assets, and decision-making evidence.

Result

The full BHD 3.2M assessment was overturned and all penalties waived. The client now has robust TP documentation that has withstood subsequent review by multiple jurisdictions.