Qatar vs Bahrain: construction business compared

The biggest differences: VAT None in Qatar vs 10% in Bahrain; Employer — national 14% in Qatar vs 18% in Bahrain; Employer — non-national 0% in Qatar vs 3% in Bahrain.

Side by side

Item	Qatar	Bahrain
Tax for Contractors
VAT	None	10%
Corporate income tax	10%	—
Withholding on contractor payments	5%	0%
Zakat on companies	No	No
Tax authority	General Tax Authority (GTA)	National Bureau for Revenue (NBR)
Payroll & Social Insurance
Employer — national	14%	18%
Employee — national	7%	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	Monaqasat — unified state procurement 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	Ministry of Industry and Commerce — Commercial Registration
Online registration portal	Single Window platform	Sijilat
Chamber membership required	Yes	—
Contractor Classification
Required for government work	Yes	—
Classification authority	Ministry of Finance — supplier & contractor classification on the unified procurement portal	Ministry of Works
Currency & Exchange Rate
Official currency	QAR	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.