How corporate tax works in Bahrain
Bahrain does not levy a general corporate income tax on most companies. Ordinary trading, services, holding, consulting and investment companies generally pay 0% Bahrain corporate tax on business profits.
The main exception is the oil and gas sector, where companies deriving profits from extracting or refining hydrocarbons in Bahrain are taxed at 46% on net profits. From financial years starting on or after 1 January 2025, Bahrain also applies a 15% Domestic Minimum Top-up Tax to large multinational enterprise groups with consolidated global revenue of at least EUR 750 million.
Tax rates at a glance
- Corporate profits tax
- 0% (46% oil sector)Zero
- Standard company tax
- 0%
- Oil and gas tax
- 46%
- Foreign company tax
- 0%
- DMTT for large MNEs
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Remote foundersHolding companiesInvestorsRegional operatorsHigh earners
Watch out for
- Bahrain's zero corporate tax position does not remove VAT, licensing fees, customs duty, property-transfer registration fees, municipal tax or payroll social insurance.
- Large multinational groups should check the 15% DMTT rules, even if their Bahrain entity is not in oil and gas.
- Bahrain has discussed a 10% corporate tax proposal expected from 2027, but it remains subject to legislative approval and final law details.
Frequently asked questions
Does Bahrain have corporate income tax?
Bahrain does not have a general corporate income tax for most companies. The key exceptions are oil and gas businesses taxed at 46% and large multinational groups that may fall under the 15% DMTT.
What businesses pay corporate tax in Bahrain?
Oil and gas companies that derive profits from extracting or refining hydrocarbons in Bahrain pay 46% tax on net profits. Large MNE groups can also be affected by Bahrain's Domestic Minimum Top-up Tax.
Is Bahrain good for companies?
Bahrain can be attractive for companies because most sectors have 0% corporate income tax, no dividend withholding tax and a straightforward GCC location. Companies still need to model VAT, employment costs, licensing, substance and possible future tax changes.