VAT’s UP

Bahrain Government Rethinks Proposal to Tax Foreign Investment

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Manama October 12 2023:

A RETHINK is being urged by the government on a proposed legislation to tax foreign investments.

Under the proposed legislation, the tax would apply to:

  • Profits from any contractual agreement
  • Profits from any share sale of the establishment or company
  • Profits from product agencies signed in Bahrain or abroad
  • Property lease or rent; arbitration, brokering or mediation
  • Contractual licensing of trademarks to others
  • Asset sale or liquidation

Investments below BD 10,000 would be exempt.

However, the levy would be applied annually as follows:

  • Five per cent on investments between BD10,001 and BD50,000
  • Ten percent between BD50,0001 and BD100,000
  • Fifteen percent between BD100,001 and BD150,000
  • Twenty percent between BD150,001 and BD250,000
  • Twenty percent between BD250,001 and BD500,000 and thirty percent beyond that

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