【From CFTInet, Beijing 08/16/2000】 CORPORATE TAXES
GENERAL NOTE
The information in this entry is current as of January 1998. For subsequent developments, consult the contact listed above.
TAXES ON CORPORATE INCOME
With the exception of certain specific taxes on oil-producing and exploration companies, there are no taxes in Bahrain on income, sales, capital gains, or estates. There are no taxes or withholding taxes on interest, dividends, fees, or other remittances.
Companies are allowed to transfer accumulated profits and capital without restrictions.
An annual commercial registration fee is payable by all companies. Such fees vary according to the business activity and the form of the company.
Exempt companies/On November 1, 1977 a Ministerial Decree was passed, Providing for the establishment of exempt companies in Bahrain. These companies can be wholly owned by foreign nationals or corporations. They are prohibited from carrying on any business within Bahrain, however, they are expected to maintain an office in Bahrain and conduct at least some of their management in Bahrain. An annual registration fee of BD3,000 is payable by each company, except for banks, insurance
and investment Companies, for which the following fees apply.
CLOSED PUBLIC
BD BD
Banks…………………………………………………… 12,000 75,000
Insurance companies………………………………… 7,000 12,000
Investment companies…………………………………9,000 30,000
Brass-plate companies/during 1993 a Ministerial Decree was passed providing for the establishment of brass-plate companies in Bahrain. These companies can be owned wholly by foreign nationals and can use the address of their accountants or lawyers to register their office in Bahrain. However, they are prohibited from carrying out investment, banking or insurance business. An annual registration fee of BD 300 is payable by each company. The minimum share capital required is BD 2,500.
Offshore banking/Offshore banking licenses are granted and regulated through the Bahrain Monetary Agency. An annual fee of BD 10,000 is paid by each institution granted an offshore banking license. As with exempt companies, offshore banking units are generally prohibited from conducting business with Bahrain residents, but their operations moust be based in Bahrain.
NOTE
The Exchange rate (selling) of the dinar at December 31, 1997: US$1=BD 0.377
