TaxSavvyBH

Worked example of draft Bahrain CIT

If my taxable profit is BHD 500,000, how much tax would the draft charge?

The situation

The draft applies 0% on taxable income up to BHD 200,000 and 10% above that.

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

Tax would be 10% x (BHD 500,000 less BHD 200,000) = BHD 30,000, an effective rate of 6%. Taxable income will depend on deductions and adjustments defined in the final regulations. Use this as a budgeting range, not a final number.

What to do

  1. Estimate taxable income.
  2. Apply the 0% band.
  3. Apply 10% above it.
  4. Budget a range.

We can do this for youCorporate income tax readiness review for the proposed 2027 Bahrain CIT: BHD 750

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