Kuwait vs Bahrain: construction business compared

The biggest differences: VAT None in Kuwait vs 10% in Bahrain; Employer — national 11.5% in Kuwait vs 18% in Bahrain; Employer — non-national 0% in Kuwait vs 3% in Bahrain.

Side by side

Item	Kuwait	Bahrain
Tax for Contractors
VAT	None	10%
Corporate income tax	15%	—
Withholding on contractor payments	0%	0%
Zakat on companies	Yes	No
Tax authority	Ministry of Finance — Tax Administration	National Bureau for Revenue (NBR)
Payroll & Social Insurance
Employer — national	11.5%	18%
Employee — national	10.5%	8%
Employer — non-national	0%	3%
Employee — non-national	0%	1%
Wage protection	Wage Protection System	Wage Protection System (LMRA)
Government Tenders
E-procurement platform	CAPT e-portal	Tender Board e-Tendering
Bid bond	—	1%
Performance bond	10%	10%
Retention	10%	10%
Registering a Contracting Company
Commercial registry	Ministry of Commerce and Industry — Commercial Registry & licence	Ministry of Industry and Commerce — Commercial Registration
Online registration portal	Ministry of Commerce and Industry	Sijilat
Chamber membership required	—	—
Contractor Classification
Required for government work	Yes	—
Classification authority	Central Agency for Public Tenders (CAPT) — contractor classification	Ministry of Works
Currency & Exchange Rate
Official currency	KWD	BHD
Alternative currencies in use	None	None

— no documented figure in the sources, or set by each tender or contract. Withholding falls on payments to non-residents in most countries and on every contractor payment in a few — see each country’s tax page.