Tax
From The Report: Bahrain 2023
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Bahrain has long enjoyed its status as a tax-free jurisdiction prior to the introduction of excise tax in late 2017, followed by the introduction of value-added tax (VAT) in 2019. The kingdom is now home to an evolving tax landscape, with several notable tax and reporting regulations introduced since 2017.
Bahrain is well established as a financial leader in the Middle East, and in recent years the authorities have diversified the economy to include technology, manufacturing and logistics. The country welcomes international investment, allowing 100% foreign ownership in various sectors. Additionally, Bahrain is consistently ranked as one of the best places in the GCC for expatriates to live and work.

This chapter contains a viewpoint from Mubeen Khadir, Head of Tax and Corporate Services, KPMG Fakhro.

Articles from this Chapter

Overview

Changing ecosystem: Regulatory landscape continues to evolve, with plans to update international minimum standards in 2024
OBG
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Bahrain has long enjoyed its status as a tax-free jurisdiction prior to the introduction of excise tax in late 2017, followed by the introduction of value-added tax (VAT) in 2019. The kingdom is now home to an evolving tax landscape, with several notable tax and reporting regulations introduced since 2017. Bahrain is well established as a financial leader in the Middle East, and in recent years the authorities have diversified the economy by promoting technology, manufacturing and logistics. The…

Viewpoint

Robust regulation: Mubeen Khadir, Head of Tax and Corporate Services, KPMG Fakhro, on the litigation landscape for value-added tax (VAT)
OBG
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Viewpoint:Mubeen Khadir Since Bahrain implemented VAT on January 1, 2019, the National Bureau for Revenue (NBR) has seen a rise in tax disputes and reassessments. In some cases, these have resulted in litigation between the taxpayer and the NBR. With the VAT rate doubling as of January 1, 2022 – with a one-year transitional period – we are likely to see more such disputes in the years ahead. Certain situations have seen the NBR impose penalties. For example, in areas of the economy such…