BDO’s quarterly GCC Tax Update brings together key regulatory changes, legislative developments, and enforcement signals across all six GCC member states. It is compiled by our in-country specialists who advise businesses operating across the region every day.
Tax regulations across the Gulf Cooperation Council are evolving at pace, and Q1 2026 has delivered meaningful developments that every regional business should know about.
Key Q1 2026 tax updates in Bahrain
- Draft 10% Corporate Income Tax law formally referred to the Bahraini National Assembly by the Crown Prince and Prime Minister.
- Corporate Income Tax applies to companies with annual revenues exceeding BHD 1 million or net profits above BHD 200,000, with tax imposed on profits exceeding these thresholds.
- Potential 5% withholding tax on certain cross-border payments included in the draft law.
- Proposed legislation aligned with Bahrain’s economic diversification strategy, with an expected effective date of 2027.
Whether you are managing cross-border structures, assessing e-invoicing readiness, or tracking the GCC’s alignment with OECD Pillar Two, this update provides the regional picture in one place.