Bahrain: Action plan approved for 2025-2026 budget, corporate tax to be introduced
The eight-point action plan includes the introduction of a corporate income tax.
According to reports, the draft for Bahrain’s 2025-2026 fiscal budget has been finalized, incorporating an eight-point action plan that includes the following tax-related provisions:
- Introduction of a corporate income tax (CIT)
- No increase in the value added tax (VAT) rate
- Expansion of excise tax scope and / or rate
- Introduction of carbon emission fees / tax
Read an April 2025 report prepared by the KPMG member firm in Bahrain