Corporate income tax readiness review for the proposed 2027 Bahrain CIT
The 10% CIT is still a draft. We model what it would cost you on the draft terms, list the system and contract changes needed, and update the plan the day the final law and regulations are published.
BHD 750One time, refreshed on enactment
For: Bahrain companies and branches with revenue above BHD 1 million or taxable income above BHD 200,000, and businesses paying non-residents for services, royalties or interest.
What we need from you
Last two years audited accounts
Model taxable income
Revenue by entity
Scope test at BHD 1 million
Payments to non-residents by type
Proposed WHT exposure
Group structure
DMTT and CIT interaction
Existing contracts with tax clauses
Gross up and WHT clauses
What we discuss
Is the business likely in scope on revenue or profit?
Decides urgency
Are you also in DMTT?
Interaction rules are not yet public
Do your activities fall into the draft exempt income list (financial, professional, logistics)?
Conditions will come in regulations
Accounting year and system readiness
First period would start 1 January 2027 on current proposal
What we file
Model draft CIT
Example: taxable income BHD 500,000; 0% on first BHD 200,000; 10% on BHD 300,000 = BHD 30,000
Track enactment
What you get
Readiness memo with impact estimate
Update note on enactment
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 Source
- Draft CIT Law: legislative status: Referred to the legislature on 29 December 2025; closed consultation on 23 February 2026; still a draft in public sources up to September 2026 Source
- Draft CIT Law: withholding tax (proposed): Expected 5% WHT on royalties, interest and services paid to non-residents, 0% on dividends, with quarterly WHT returns; not in force Source
Questions people ask
- Is Bahrain corporate income tax in force
- Who would pay the proposed Bahrain CIT
- Worked example of draft Bahrain CIT
- Proposed Bahrain withholding tax on services
- Draft CIT exempt income list
- Draft CIT and DMTT together
- Oil and gas companies under the Bahrain draft
- Late filing penalty proposed in Bahrain CIT
- Small business and nil CIT returns
- Preparing systems for Bahrain CIT
Contact us to book
Online payment in BHD is not open yet. Send us a message and an adviser for Bahrain confirms the scope and the fee before any work starts.