Mining & Resources

Tax advisory for resource extraction and mineral processing companies.

Tax Issues

Resources Tax Challenges

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Aluminum (Alba)

Bahrain's largest industrial company. Export sales are zero-rated. Raw material imports and energy costs attract significant input VAT. Capital equipment for expansion projects.

Oil & Gas Services

Service companies supporting BAPCO operations. Drilling services, maintenance, and offshore supply. Cross-border service imports and reverse charge VAT obligations.

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Quarrying

Sand, gravel, and aggregate extraction. Government royalties on mineral extraction. Heavy equipment import VAT and capital goods adjustment rules.

Key Issues

Tax Planning

📊 Capital Goods Scheme

Mining equipment over BD 5,000 subject to 10-year capital goods adjustment. Annual recalculation if taxable use percentage changes.

🌍 Export Zero-Rating

Mineral exports are zero-rated with full input VAT recovery. Requires proof of export documentation (customs declarations, bills of lading).

⚡ Energy Costs

Subsidized energy for certain industrial users. VAT applies on energy supplies at standard rate. EWA billing must include valid tax invoice.

🔧 Contractor Management

International contractors on resource projects. Withholding obligations, reverse charge, and permanent establishment risk assessment.

Resources Tax Advisory

Specialist tax advice for Bahrain's extractive industries.

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