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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.

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April 7, 2025

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

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