Global Daily Tax News, Bahrain To Levy 10pc Tax On Companies, (Jan 2, 2026)

Bahrain's Cabinet has endorsed a proposal to introduce a 10 percent tax on the profits of local companies whose annual revenues exceed BHD1m (USD2.66m) or whose net annual profits exceed BHD200,000.

The tax will be imposed on profits exceeding BHD200,000, to diversify revenue sources for the country.

Further, the Cabinet is proposing to raise the selective tax on soft drinks.

Both measures must now be approved by Bahrain's legislature.