Bahrain corporate tax 2026: proposed threshold, timeline and current law
By Gaurav Agarwal · Updated 21 October 2026
Reported by News of Bahrain on 21 October 2026. The official text has not been published yet; we will update this page when it is.
What was reported
News of Bahrain reported on 21 October 2026 that Parliament's Financial and Economic Affairs Committee hopes to bring a corporate tax bill to Parliament by the end of November 2026. Committee chairman MP Ahmed Al Salloom was quoted as saying the timetable depends on reaching agreement.
The same report says the proposal would target company net profit above BD200,000. It also attributes to Al Salloom a statement that the existing domestic minimum top-up tax has brought more than BD150 million to the state budget according to final accounts.
These are attributed claims from the named outlet. The bill text, final rate, definitions, exemptions, filing rules and start date have not been published officially. Businesses should not treat the reported threshold or timetable as enacted law.
What is official today
- Bahrain has a Domestic Minimum Top-up Tax law for qualifying multinational enterprise groups.
- The law sets a 15% minimum rate.
- Its revenue test is consolidated annual group revenue of at least EUR750 million in at least two of the four preceding fiscal years.
The current DMTT is a targeted multinational-enterprise regime. It is separate from the broader domestic corporate tax proposal reported for companies above a BD200,000 net-profit threshold.
| Question | Law today | Reported proposal |
|---|---|---|
| Who is in scope? | Qualifying multinational groups meeting the EUR750 million revenue test | Companies with net profit above BD200,000, according to News of Bahrain |
| Rate | 15% minimum rate under the DMTT law | No final official rate published in the report used for this update |
| Status | Enacted law | Proposal, not law |
| Next milestone | Follow NBR compliance rules | Committee hopes to reach Parliament by end-November 2026 |
Which businesses may be affected
The reported BD200,000 figure refers to net profit, not turnover. The official bill has not been published, so businesses cannot yet know how net profit would be defined, whether the threshold applies per entity or group, or which deductions and exemptions would be available.
A Bahrain company below the multinational DMTT scope should not assume that it has a new corporate tax liability today. A company already within the DMTT regime should continue following that law and National Bureau for Revenue guidance regardless of the broader proposal.
Branches, free-zone businesses, regulated financial institutions, holding companies and groups with related entities will need the final text before determining their position.
What businesses should do now
- Close monthly accounts and reconcile revenue, expenses and net profit.
- Keep supporting invoices, contracts and payroll records in a consistent filing system.
- Map every Bahrain entity and branch in the group.
- Identify related-party payments and cross-border transactions.
- Ask your accountant to model scenarios, clearly labelled as estimates.
- Watch NBR, Parliament and the Official Gazette for the published bill and final law.
Do not change invoices or start charging customers a new tax based on a proposal. Bahrain VAT remains a separate system. For VAT documents and consumer invoices, use our Bahrain VAT invoice guide.
What is still unknown
The official bill has not been published, so the final tax rate, commencement date, return period, payment deadline, loss relief, group relief, sector exemptions and penalty rules remain unknown. The end-November date is a committee target reported by News of Bahrain, not a guaranteed enactment date.
The reported BD150 million DMTT collection figure is also attributed to the committee chairman through the outlet. It should not be treated as an NBR release unless it appears in an official published account or statement.
FAQs
Does Bahrain have corporate tax for every company now?
No. The broader corporate tax is a proposal. The current official law covered here is the DMTT for qualifying multinational groups.
Is BD200,000 the official threshold?
News of Bahrain reports that the proposal targets net profit above BD200,000. The official bill text has not been published.
Will the law start by the end of November 2026?
No start date is confirmed. The outlet reports a committee goal of bringing the bill to Parliament by the end of November, subject to agreement.
What should a small business do now?
Keep clean accounts and records, but do not treat the proposal as a current tax charge. Wait for the official bill, final law and NBR guidance.
Sources
- News of Bahrain, committee chairman interview
- LLOC, Domestic Minimum Top-up Tax law
- National Bureau for Revenue
- Council of Representatives
Sources checked 21 October 2026.