Bahrain With no personal income tax, Bahrain relies on output from the Abu Safa oilfield, which is shared with Saudi Arabia, for about 70 percent of its budget revenue.
For social security benefits, citizens contribute 7 percent of their total income to the government, while expatriates pay 1 percent. Employers must also make a contribution of 12 percent of a citizen’s income for social insurance, and pay 3 percent for expatriate employees. Other...
more Bahrain With no personal income tax, Bahrain relies on output from the Abu Safa oilfield, which is shared with Saudi Arabia, for about 70 percent of its budget revenue.
For social security benefits, citizens contribute 7 percent of their total income to the government, while expatriates pay 1 percent. Employers must also make a contribution of 12 percent of a citizen’s income for social insurance, and pay 3 percent for expatriate employees. Other indirect taxes include a stamp duty of up to 3 percent of the value of the property on real estate transfers. Expatriates also have to pay a 10 percent municipal tax for renting a home in the Persian Gulf state.
Despite its oil wealth, Bahrain had a budget deficit of $83 million in 2011 and is considering issuing an international bond . The country has also been in turmoil from pro-democracy protests by majority Shi’ite Muslims against a Sunni-dominated government. The protests began in February 2011 and followed uprisings in other Arab nations.
Pictured: The Manama Souk, Bahrain.
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