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Professional Services

Tax advisory for law firms, consultancies, accounting practices, and advisory businesses.

Key Issues

Tax Considerations

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Fee-Based VAT

Professional fees from consulting, legal, and advisory services are standard-rated at 10%. Time and materials vs fixed-fee VAT timing considerations.

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Cross-Border Services

Services to overseas clients may be zero-rated if the place of supply is outside Bahrain. Key: where the client belongs and where the service is performed.

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Partnership Structures

Partners in Bahraini firms — profit distributions, drawings, and partner tax positions. Structuring for optimal GOSI and ESR compliance.

Our Services

How We Help

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Law Firm Tax

Client account treatment, disbursement VAT, trust fund handling, and international arbitration fee taxation.

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Consulting Firms

Project-based VAT timing, multi-country engagement structuring, and subcontractor VAT chains.

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Architecture & Engineering

Construction-related services, project stage billing, international design services, and branch PE risks.

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IT & Consulting

SaaS VAT treatment, managed services, software licensing, and R&D-related tax considerations.

Professional Services Tax

We understand the unique tax challenges of service-based businesses.

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