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Bahrain vs Kuwait
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ง๐Ÿ‡ญ Bahrain
vs
๐Ÿ‡ฐ๐Ÿ‡ผ Kuwait
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0%
No personal income tax
No change
0%
No personal income tax
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% maintained
No change
5%
VAT introduction at 5% expected 2025โ€“2026
โ–ฒ +5.0pp vs 2025
Corporate Tax Rate
Corporate Tax Rate
0%
0% standard; MNC Pillar Two compliance maturing
No change
15%
15% foreign; domestic minimum tax for Pillar Two
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT
No change
0%
No CGT
No change
Social Security & Payroll
Social Security / Payroll
~19%
SIO contributions stable
No change
~16%
PIFSS stable; expat levy discussions ongoing
No change
State, Regional & Local Taxes

๐Ÿ‡ง๐Ÿ‡ญ Bahrain โ€” Municipal Fees & Levies

Bahrain has no income tax on individuals and no corporate income tax for most businesses outside the oil sector. Municipalities collect fees for commercial registrations and services. Bahrain introduced VAT at 5% in 2019, raised to 10% in 2022. Social insurance is administered by the Social Insurance Organization (SIO). Bahrain's Economic Vision 2030 aims to diversify from oil. The country is a regional financial hub and attracts holding companies due to its zero-tax environment for most activities.

๐Ÿ‡ฐ๐Ÿ‡ผ Kuwait โ€” No Sub-National Tax Variation

Kuwait is a city-state with no local or regional income taxes. All taxation is national. Kuwait has no income tax on individuals (citizens or expatriates). Foreign companies operating in Kuwait pay corporate income tax at 15%. National Labour Support Tax (NLST) at 2.5% applies to Kuwaiti listed company profits. Zakat at 1% applies to Kuwaiti company profits. The Kuwait Investment Authority (KIA) manages the state's sovereign wealth fund, which generates significant non-tax revenue reducing fiscal dependency.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Bahrain vs Kuwait: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: Bahrain and Kuwait have similar top income tax rates (0% vs 0%).

๐Ÿ›’ VAT/Sales Tax: Bahrain has a higher consumption tax (10% vs 5%).

๐Ÿข Corporate Tax: ๐Ÿ‡ง๐Ÿ‡ญ Bahrain offers a lower corporate rate (0% vs 15%), which can influence business location decisions.

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