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Bahrain: Overview of draft law introducing 10% corporate income tax

Draft law shared with representatives from Bahrain business community as part of closed consultation

March 26, 2026

The Bahrain Chamber of Commerce and Industry (BCCI) on February 23, 2026, shared a copy of the draft law imposing a 10% corporate income tax on local companies effective from 2027 with representatives from the Bahrain business community as part of a closed consultation.

The draft law was referred to the legislative authorities on December 29, 2025, but has yet to be officially released.

The KPMG member firm in Bahrain prepared a March 2026 report that provides an overview of the draft corporate income tax law and describes how the regime will be similar to those in other Gulf Cooperation Council (GCC) countries. 

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