Late filing penalty proposed in Bahrain CIT

The situation

The draft proposes late filing penalties of up to 30% of the tax that should have been declared.

The law

• Draft Corporate Income Tax Law (not yet enacted): Proposed 10% tax on taxable income above BHD 200,000 for residents with revenue over BHD 1 million or taxable income over BHD 200,000, expected from 1 January 2027

What it means for you

This is high compared with VAT fines. If the law passes, build year end close processes that leave time for the CIT return. Penalty terms can still change before enactment.

What to do

1. Note the proposed penalty.
2. Plan faster year end close.
3. Assign a tax owner.
4. Recheck on enactment.

Related

• Preparing systems for Bahrain CIT
• Draft CIT and DMTT together
• Oil and gas companies under the Bahrain draft
• Is Bahrain corporate income tax in force
• Small business and nil CIT returns
• Who would pay the proposed Bahrain CIT