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Bahrain: Draft law introducing 10% corporate income tax referred to legislative authorities; updated guide on scope of domestic minimum top-up tax (DMTT)

Draft legislation yet to be released

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january 5, 2026

The National Bureau for Revenue (NBR) on December 30, 2025, issued a press release stating that a draft law imposing a 10% corporate income tax on local companies effective from 2027 was referred to the legislative authorities on December 29, 2025.

The draft legislation has yet to be released, but the KPMG member firm in Bahrain prepared a December 2025 report summarizing how the new corporate income tax is expected to apply, and in particular how the corporate income tax may interact with the domestic minimum top-up tax (DMTT), as well as recommended next steps for Bahrain businesses. The KPMG member firm also released a January 2026 report discussing the recognition and measurement of deferred tax assets (DTAs) and deferred tax liabilities (DTLs) under applicable International Financial Reporting Standards (IFRS), which companies will have to address in connection with the new corporate income tax.

In addition, the NBR on December 31, 2025, published an updated version of the guide on the scope of the DMTT and associated registration requirements.

Read a December 2025 report prepared by the KPMG member firm in Bahrain

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