This guide is an overview of the Bahrain’s Value Added Tax (“VAT”) system, focused on how it affects foreign businesses trading with Bahrain. It is general in nature and unlikely to cover the specifics of your scenario. It should be read as such and not be construed as advice. For advice as to how your business is affected by Bahrain VAT, please contact a MMJS Bahrain VAT specialist.
November 24, 2023
Ganesh has extensive experience of more than 30 years in providing specialist tax services, particularly to large privately owned groups, with particular strengths in the property, retail, healthcare and hospitality industries. He has supported various entities with specialist advice on tax-effective structures and restructures, cross-border transactions on account of outbound and inbound India investments, mergers, acquisitions and divestments. Ganesh has also worked with stakeholders across businesses to deliver solutions such as tax due diligence, tax consolidation and restructuring of large family businesses in the Middle East, Asia, and Singapore.
Surandar Jesrani is the CEO and Managing Partner at MMJS Consulting. A chartered accountant by qualification and entrepreneur by nature, Surandar prior to founding MMJS was in key positions at HSBC Private Equity, Infosys, L&T and GM.
Surandar is a thought leader and the leading newspapers in the region frequently seek his views. Surandar is a speaker at various International forums and was recognized as ‘Corporate Icon of the Year’ for three consecutive years.
December 5, 2022
The Accountant Magazine recently highlighted the impact of the OECD two-pillar solution to control impact of BEPS on GCC (Gulf Co-operation Council) countries. Two tax experts from Kreston Global, Ganesh Ramaswamy, Partner at Kreston Rangamani in India and Surandar Jesrani of Kreston Menon shared their thoughts with The Accountant on the region’s readiness to adopt the new framework.
As the global economy becomes increasingly more digitalized, the OECD made the decision to update the framework on base erosion and profit sharing. Pillar one impacts the multi-national enterprise (MNE) with a turnover of more than 20 billion and profits before tax of over 10%. Pillar two is seeking a global tax rate of at least 15%.
Parts of the region have been in a position to be able to adopt the pillar two framework with relative ease. Multiple countries within the GCC are already positioned to be able to adopt the 15% tax rate, with Oman already in that position. A 15% corporate tax rate exists for non-GCC companies in Kuwait with Saudi Arabia already exceeding the expectations at 20%. Bahrain and UAE currently have no corporate tax structure and are considering how to implement it.
UAE will meet obligations by introducing corporate tax in June 2023. This is a step-change for the country, however, guidance is yet to be issued with details of how that might affect businesses in the country. Bahrain has not yet made a full announcement, but is expected to follow the UAE in its adoption of pillar two principles.
Saudi is seeking to make changes, considering the removal of the Zakat tax, with Qatar and Kuwait adopting corporate tax for GCC and non-GCC entities. In order to control BEPs within the GCC region, five of the six countries within the region will be adopting the OECD’s BEPs 2021 framework update. Kuwait is yet to confirm participation.
December 6, 2021
The growth of the Kreston network is in the news again following the addition of two new Kreston firms. The article in International Accounting Bulletin covers the addition of Kreston Bahamas and Kreston Bahrain, who have joined the network as Kreston branded firms.
Liza Robbins, CEO of Kreston Global, said,
“I would like to welcome our new colleagues in The Bahamas and Bahrain to the Kreston Global network in an exciting period of growth as international business recovers from the pandemic. These two firms, so geographically far apart, embody the spirit of excellence and collaboration that we at Kreston Global have always championed. We look forward to working with them to build on their many successes to date, both in their respective regions and beyond.”
Click here to read the full article (subscription required).
Visit our doing business in the Bahamas and doing business in Bahrain for helpful insight on expanding your business into these countries.
November 19, 2021
LONDON PRESS RELEASE – Kreston Global today welcomes new Bahrain-based member firm Awael Public Accountants and Management Consultants to its network.
Awael Public Accountants was founded by Abbas Radhi in 2014 to provide high quality partner-led accounting, auditing, consulting, risk management and general business services to clients operating in the Kingdom of Bahrain. Clients range from large international entities to emerging and owner-managed businesses, with a particular expertise in sectors including construction, retail and hospitality.
Founding partner Abbas Radhi has over 35 years’ experience of accounting and auditing major public and private sector organisations in the GCC and internationally, including the US and UK. He has led assignments for numerous Bahraini government organisations including the Ministry of Works, the Ministry of Information, and the Ministry of Agriculture. Abbas is a former partner and Deputy Chairman of BDO Public Accountants (Bahrain, Qatar and Oman), and PwC (Bahrain and Qatar). He played a leading role in contributing to the Corporate Governance Code of the Kingdom of Bahrain and is Chairman of the Bahrain Accountants Association.
Director Derrick D’Costa, who oversees day to day management of Awael alongside Abbas Radhi, has over twenty years of experience in the auditing, consulting and financial industry. Prior to joining Awael he served in senior management positions in the fields of auditing, advisory, corporate finance and management consultancy with large accounting firms, in India and in Bahrain. He has drafted strategies and business plans for several large organisations in Bahrain and the region, and has executed several complex assignments.
The firm consists of 13 other professional staff and two non-fee earning staff.
This announcement follows the rebrand of the Kreston Global network in July 2021 and comes in the same year that Kreston Global celebrates its 50th anniversary.
Abbas Radhi, partner at Awael Public Accountants, said:
“Having worked alongside Kreston Global firms for many years they were a natural partner for us as we look to develop our offering. We found them to be passionate and sincere. There were a number of natural synergies but we were particularly drawn to the depth and breadth of expertise across the network, their commitment to integrity and ethical values and the emphasis on collaboration underpinned by technology. We will be working with our new colleagues to maximise the benefit of joining a global network for our clients.”
Liza Robbins, CEO of Kreston Global, said:
“Abbas Radhi has a profile second to none in the Bahraini audit and accounting community and Awael Public Accountants has established an excellent reputation since its foundation, reflecting both the calibre of its professionals and the energy of the regional economy. We look forward to working with Mr Radhi, Mr D’Costa and their colleagues to build links with the wider Kreston Global network and to develop Awael’s profile at home and abroad.”
November 18, 2021
November 17, 2021
