background image
8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty N/A N/A
Payroll Tax N/A There is no payroll tax. However, a training levy equal to 3% of annual payroll applies for companies with more than 50 employees that do not provide training to their employees.
Social Security Employer Contribution 15%, 4% The employer contribution for Bahraini employees is equal to 15% of gross salary, including contributions for old age, disability and death, employment injuries and unemployment. For non-Bahraini employees the contribution is equal to 4% of gross salary, including contributions for employment injuries and unemployment.
Social Security Employee Contribution 8%, 1% Bahraini employee contributions are equal to 8% of gross salary, including contributions for old age, disability and death, and unemployment. Non-Bahraini employee contributions are equal to 1%, and include only unemployment.
Property Tax N/A N/A
Transfer Tax N/A N/A
Stamp Duty 1.5% to 3% Stamp duty is levied on the transfer and registration of real estate at rates ranging from 1.5% to 3% depending on the value of the real estate.
Excise Tax 50% to 100% Effective 30 December 2017, a GCC selective excise tax is applicable on specified harmful goods. Excise tax is applicable on carbonated drinks at a rate of 50%, and energy drinks and tobacco products at a rate of 100%.
Customs Duty Varies Customs duties are levied on various goods imported into Bahrain. The standard rate is 5%, although the rate for alcoholic beverages is 125% and the rate for cigarettes is 100%. Certain categories of goods such as paper and aluminum products are subject to a 20% duty rate.
Municipal Rental Tax 10% A 10% rental tax is levied by municipalities on the rental of commercial and residential property occupied by expatriates.