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Taxation in Bahrain

Bahrain is a tax free economy with no withholding tax, no corporate tax, no income tax and no VAT, which significantly contributed to a great influx of foreign investors in Bahrain.

There are however, certain taxes imposed on oil, gas and petroleum. There is also a 1% 'Social Insurance Tax' on salaries to help fund unemployment benefits for all workers and a municipal tax is also payable by individuals or companies renting property in Bahrain.

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