CBB committed to ensuring correct application of VAT

Manama, Jan. 5 (BNA): The Central Bank of Bahrain (CBB) today reiterated its commitment to continue monitoring all financial institutions operating within the Kingdom of Bahrain to ensure the correct application of the Value Added Tax (VAT) in conformity with the circular sent out prior to the VAT's induction on Jan 1st, 2019. In line with the VAT Law and its Executive Regulations, interest payments on loans, deposits, currencies trading, the issue or transfer of ownership of securities (equities or debt), and life insurance and reinsurance contracts are not subject to VAT. However, general insurance, remittance and fees on transfer of money, issuance of cheques, brokerage and intermediary services, and discretionary asset management are subject to VAT. The CBB urged all financial institutions to familiarise themselves with the list of financial services that are not subject to VAT, as defined by Article 81 of the Kingdom's VAT Law's Executive Regulations. Further details are available on the National Bureau for Taxation's website (nbt.gov.bh/laws_regulations). Contact: External Communications Unit Central Bank of Bahrain Tel: +973 17547319/ 17547374 Email:media@cbb.gov.bh Website:www.cbb.gov.bh