Tax advisory for solar, wind, green finance, and sustainability projects.
EPC contracts — standard-rated. Solar panel imports — 5% customs duty. Feed-in tariff revenue — standard-rated supply. Net metering — adjustment to consideration. O&M contracts — standard-rated service.
Green Sukuk — exempt (financial instrument). Carbon credit trading — standard-rated? ESG consulting — standard-rated. Sustainability reporting — standard-rated. Green bond proceeds — no VAT.
Battery systems import — 5% customs + 10% VAT. Energy storage services — standard-rated. EV charging stations — standard-rated electricity. Hydrogen production — emerging area, standard-rated.
Bahrain's Economic Development Board (EDB) offers incentives for green investments: customs duty exemptions on renewable equipment, streamlined licensing, and potential DMTT credits for qualifying green expenditure. The Bahrain National Energy Efficiency Action Plan targets 5% energy from renewables by 2025.
