Bahrain: Introduction of corporate income tax confirmed
Bahrain is expected to implement a standard corporate income tax regime similar to other jurisdictions.
Introduction of corporate income tax confirmed
The Bahrain Minister of Finance and National Economy on 23 May 2023, confirmed the introduction of corporate income tax in Bahrain during the weekly parliamentary session.
Bahrain is expected to implement a standard corporate income tax regime similar to other jurisdictions.
How will “taxable income” be calculated?
The starting point for calculating taxable income will be a taxable person’s accounting profit/loss as per the financial statements. The accounting profit/loss will then be subjected to certain adjustments (additions and deductions) to determine the taxable income. These adjustments fall under two categories:
- Timing differences
- Permanent differences
Timing differences are differences between taxable profit and accounting profit that are given effect in one period and reversed in subsequent periods whereas permanent differences are given effect in one period but are not reversed in subsequent periods.
Read a July 2023 report [PDF 409 KB] prepared by the KPMG member firm in Bahrain
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