Which activities trigger Bahrain ES
Our Bahrain company distributes goods for its group. Is that an ES relevant activity?
The situation
Relevant activities include distribution and service centre, headquarters, holding company, leasing, shipping, intellectual property, banks, financing, insurance, investment firms and fund administrators.
The law
- Economic substance rules: Ministerial Order No. 106 of 2018 and CBB Directive OG/499/2018: Entities carrying on relevant activities must show core income generating activity and management in Bahrain and lodge an ES return
What it means for you
Distribution and service centre business is on the list, so you must assess the tests. Look at actual activities, not just the CR code, because the assessment follows real activity. Record your conclusion in a memo.
What to do
- List what the company actually does.
- Map each to the relevant activity list.
- Assess the tests for listed activities.
- Record the conclusion.
We can do this for youEconomic substance assessment and annual ES return: BHD 400