Bahrain

In Bahrain, cryptocurrencies are legally defined as 'Accepted Crypto-Assets' under the Central Bank of Bahrain's (CBB) Rulebook. The country has a regulated crypto sector, meaning that services such as trading, dealing, advisory, and portfolio management involving accepted crypto-assets require licensing from the CBB. Activities like mining, creation of new crypto assets, and software development are excluded from this licensing requirement. The National Bureau for Revenue (NBR) is the primary governmental body responsible for tax administration in Bahrain. While the CBB regulates the crypto-asset service providers, there is no specific tax classification for cryptocurrencies, they are generally treated under existing tax principles. For individuals, Bahrain imposes no personal income tax, which extends to all crypto-related income and gains. This means there is no tax on income derived from cryptocurrencies, nor is there a capital gains tax on the sale or exchange of crypto assets. All gains, regardless of the holding period, are permanently tax-free. For corporations, a 0% corporate income tax applies to general sectors, including most crypto-related businesses. However, a 46% corporate tax rate is levied specifically on companies operating in the oil and gas and petrochemical sectors. Value Added Tax (VAT) implications differ: crypto-to-crypto and crypto-to-fiat exchanges are exempt from VAT as they are considered financial services, but a 10% VAT applies to other crypto-related services. Regarding specific crypto activities, staking, mining, Decentralized Finance (DeFi), and Non-Fungible Tokens (NFTs) are generally not subject to tax for individuals, falling under the overall no-tax regime. Converting crypto to fiat currency or swapping one cryptocurrency for another are also non-taxable events. For businesses engaged in staking or mining, the tax treatment is less clear, but generally, businesses outside the oil and gas sector are not subject to corporate income tax.