Bahrain Corporate Income Tax

Corporate taxation: hydrocarbons and the DMTT

Bahrain has no general corporate income tax. Only two regimes impose direct tax on business profits: a 46% tax on oil, gas and hydrocarbon companies, and (from 2025) a 15% Domestic Minimum Top-up Tax (DMTT) on Bahraini constituent entities of very large multinational groups. There is no withholding tax on dividends, interest or royalties.

• General corporate income tax rate — 0% - no general corporate income tax applies % (PwC Worldwide Tax Summaries - Bahrain Corporate)
• Tax rate on oil/gas (hydrocarbon) companies — 46% of net profits from the extraction or refinement of hydrocarbons (fossil fuels) % (Amiri Decree No. 22 of 1979)
• Hydrocarbon tax base — Net profits derived from the sale of crude oil, refined products and natural gas attributable to operations in Bahrain (Amiri Decree No. 22 of 1979)
• DMTT minimum effective rate — 15% effective rate on adjusted financial (GloBE) income of in-scope constituent entities % (Domestic Minimum Top-up Tax Law (Decree-Law No. 11 of 2024))
• DMTT revenue threshold (scope) — MNE groups with consolidated annual revenue of at least EUR 750 million in at least two of the four preceding fiscal years EUR (Domestic Minimum Top-up Tax Law (Decree-Law No. 11 of 2024))
• Purely domestic businesses — DMTT does not apply to local businesses with no operations outside Bahrain (Domestic Minimum Top-up Tax Law (Decree-Law No. 11 of 2024))
• DMTT de minimis exclusion — De minimis exclusion broadly available where average GloBE revenue is under EUR 10 million (and qualifying income below the GloBE threshold) EUR ((approx - confirm against final Regulations)) (Domestic Minimum Top-up Tax Law (Decree-Law No. 11 of 2024))
• DMTT transitional safe harbours — Permanent and transitional CbCR safe harbours and a five-year exclusion for newly internationalised groups are available (Domestic Minimum Top-up Tax Law (Decree-Law No. 11 of 2024))
• Withholding tax on dividends — 0% - no withholding tax on dividends % (PwC Worldwide Tax Summaries - Bahrain Corporate (Withholding taxes))
• Withholding tax on interest and royalties — 0% - no withholding tax on interest or royalties % (PwC Worldwide Tax Summaries - Bahrain Corporate (Withholding taxes))
• DMTT registration — In-scope constituent entities must register with the NBR (Domestic Minimum Top-up Tax Law (Decree-Law No. 11 of 2024))
• DMTT payment for 2025 — Payable in instalments, including advance payments during the 2025 fiscal year ((approx - confirm instalment dates with NBR guidance)) (Domestic Minimum Top-up Tax Law (Decree-Law No. 11 of 2024))