Quick reference guide to tax and compliance terms used in Bahrain.
Country-by-Country Report — annual filing for MNE groups with consolidated revenue >€750 million.
Commercial Registration — the official business license issued by Bahrain's MOICT through Sijilat.
Domestic Minimum Top-up Tax — Pillar Two mechanism ensuring 15% effective minimum rate.
Double Taxation Agreement — bilateral treaty to prevent double taxation on cross-border income.
Economic Substance Regulations — rules requiring entities to demonstrate adequate substance in Bahrain.
Selective consumption tax on tobacco (100%), energy drinks (100%), carbonated drinks (50%).
General Organisation for Social Insurance — manages pension contributions. Bahraini: 7%+12%. Expat: 3%.
VAT paid on business purchases. Recoverable if purchase relates to taxable supplies.
Labour Market Regulatory Authority — issues work permits and monitors Bahrain-isation quotas.
National Bureau for Revenue — Bahrain's tax authority for VAT and excise administration.
VAT charged on sales and revenue. Standard rate is 10% on taxable supplies.
OECD/G20 global minimum tax — MNEs with revenue >€750M must pay ≥15% in every jurisdiction.
Buyer accounts for VAT instead of seller. Applies to services from non-resident suppliers.
Bahrain's online CR portal — applications, renewals, amendments, and legal entity management.
Transfer of Going Concern — business sale treated as outside VAT scope.
Tax Residency Certificate — confirms Bahrain residency for DTA benefit claims.
Ultimate Beneficial Ownership — register identifying individuals with ≥25% ownership or control.
Wage Protection System — electronic salary transfer monitored by LMRA.
Taxable at 0% VAT. Unlike exempt, input VAT IS recoverable. Examples: exports, basic food.
