Expert tax advisory for upstream, midstream, and downstream energy companies operating in Bahrain.
While Bahrain imposes no general corporate income tax, the oil and gas sector is uniquely subject to a 46% tax on net profits from hydrocarbon exploration and production. This makes the energy sector the most heavily taxed in the Kingdom and requires specialized advisory to manage tax liabilities effectively.
Applied to net profits from oil and gas exploration, production, and refining activities in Bahrain.
Ancillary services, oilfield services, and downstream retail activities may fall outside the hydrocarbon tax scope.
Tax structuring for exploration licenses, production sharing agreements, and joint venture arrangements including cost recovery optimization.
Tax compliance and planning for service companies including permanent establishment analysis and withholding tax management on cross-border payments.
Critical analysis of which activities fall within the 46% hydrocarbon tax scope vs. non-hydrocarbon activities taxed at 0%. Proper delineation can significantly reduce the effective rate.
