Revenue taxation could be imposed on foreign investments, if MPs have their way.
A 47-article legislation was presented today (Jan 29) by five MPs led by Khalid Bu Onk to Parliament Speaker Ahmed Al Musallam.
Revenue taxation includes: Profits from any contractual agreement; profits from any share sale of the establishment or company; profits from product agencies signed in Bahrain or abroad; property lease or rent; arbitration, brokering or mediation; contractual licensing of trademarks to others; and asset sale or liquidation.
Investments below BD10,000 would be exempted from the taxation.
However, taxes would be applied annually as follows:
Five per cent on investments between BD10,001 and BD50,000, 10pc (BD50,0001-BD100,000), 15pc (BD100,001 and BD150,000), 20pc (BD150,001 and BD250,000), 25pc (BD250,001-BD500,000) and 30pc beyond that.
"Several countries impose revenue taxation on Bahraini investments abroad to ensure they don't compete with local manufacturing," said Mr Bu Onk.
"This ensures we are provided equal treatment, while also increasing government revenue," he added.
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