Tax advisory for franchisors, franchisees, and brand licensees.
Ongoing royalties from foreign franchisor — reverse charge mechanism applies. Franchisee must self-account for 10% VAT. No WHT from Bahrain side. DTT may protect against home-country taxation.
Upfront franchise fee — standard-rated or reverse charge if from abroad. Training and support services — separate supply analysis. Territory master franchise arrangements — single vs multiple supplies.
Mandatory marketing contributions — consideration for advertising services? If marketing fund managed by franchisor abroad — reverse charge. If managed locally — standard-rated.
Restaurant chains, coffee shops, and fast food — royalties, marketing funds, and supply chain commissions.
Gym franchises, spa brands, and wellness centers — membership fee VAT and equipment imports.
Hotel management agreements, brand license fees, and reservation system charges.
Fashion, electronics, and consumer brand licenses — distribution agreements and consignment stock.
From master agreement to store opening — tax-optimized franchise operations.
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