Related Party Transactions

#Bahrain #VAT #Law A transaction between two parties (entity to entity or entity to person) who are already joined by a pre-existing relationship. This include companies having same shareholders, common directors, partners, management etc. For example, sale of goods from Holding company to subsidiary company, sale of goods from associate company to parent company. (Reference: Internet) Related party transactions are very common in businesses. Sometimes they are voluminous. Si


#Bahrain #VAT Article 57 of Decree Law specifies the refund provisions: Refund of Tax paid on Supply or Import of the following: (a) Any excess tax paid by Taxable Person (b) Foreign Governments , Diplomatic and military missions, International organisations, for whom Supply has been made within Kingdom (c) A taxable person in the Kingdom for Tax Paid in another implementing state for economic activity. (i.e for Business Purpose) (d) Tourists Authority may provide Rules, Regu

FAQs on Bahrain VAT Law

1. For whom VAT Law is applicable Applicability of VAT: a.For Suppliers,Taxable Supplies made by Taxable Person in the Kingdom b. For Receivers,In certain cases basis of Reverse Charge Mechanism Taxable Customer c. Import of Goods Rate - 5% in General. Exemption (Zero Rated) for certain supplies. 2. I am going to sell Land & Building to another Bahrain citizen after 01st Jan 2019? What is the tax implication? Is VAT applicable for the transaction? No. Article 55 exempts Supp