Middle East

Bahrain

Corporate rate
0%*
Top personal rate
0%
VAT / GST rate
10%

*0% general corporate rate; 46% applies specifically to oil and gas corporations - see Corporate Tax Rate below.

One-sentence summary Bahrain's corporate tax position: 0% general rate, with a 46% rate applying specifically to oil and gas corporations (a 15% Domestic Minimum Top-up Tax may also apply to large multinational groups). Personal income tax: 0% - no personal income tax. VAT/consumption tax: 10% standard rate.

Corporate Tax Rate

Bahrain's headline corporate income tax (CIT) rate is 46% for oil corporations; 0% for other corporations (15% DMTT may apply).

Personal Tax Rate

0% - Bahrain has no personal income tax.

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 10. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

Bahrain has no general personal income tax and taxes only locally-sourced income; where residency is relevant (e.g., for treaty purposes), a 183-day-plus-center-of-interest test is typically applied. Corporate tax is essentially absent outside oil and gas (46% rate); from 2025, a 15% Domestic Minimum Top-Up Tax (DMTT) applies to Bahrain-resident entities within large multinational groups meeting Pillar Two thresholds (EUR 750 million consolidated group revenue in at least 2 of the preceding 4 fiscal years, with an effective tax rate below 15%).

CFC Rules

Bahrain has no CFC rules.

Thin Capitalization

Bahrain has no specific thin capitalization or transfer pricing legislation.

Treaty Network

Bahrain has double tax treaties in force with roughly 44-50 countries (sources vary slightly within this range) including Algeria, Austria, China, Cyprus, Egypt, France, the Netherlands, Singapore, Switzerland, Turkiye, and the UK, plus separate Tax Information Exchange Agreements. Bahrain ratified the OECD's Multilateral Instrument (MLI), effective June 1, 2022, and signed a Hong Kong treaty and investment protection agreement on March 3, 2024. Bahrain imposes no withholding tax on dividends, interest, or royalties, so its treaty network mainly protects against taxation risk arising on the counterparty side.

Source: PwC Worldwide Tax Summaries - Bahrain (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 26 July 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.