INSITE - UAE- Feb 2026

BAHRAIN APPROVES INTRODUCTION OF CORPORATE INCOME TAX

Summary: Bahrain’s Cabinet has approved the proposed introduction of a 10% Corporate Income Tax (CIT), expected to take effect from 2027.

In Detail: On 29 December 2025, the Bahraini Cabinet approved the proposed introduction of a CIT regime, with implementation expected from 2027. This marks a significant shift in Bahrain’s fiscal framework and reflects the Kingdom’s broader revenue diversification strategy.

Key Features of the Proposed Regime

Based on the Cabinet’s announcement, the proposed CIT would apply at the rate of 10% to businesses meeting either of the following thresholds:

• Annual revenues exceeding BHD 1 million; or

• Net annual profits exceeding BHD 200,000.

It is anticipated that the tax would apply only to the portion of profits exceeding the BHD 200,000 threshold, although detailed mechanics are yet to be confirmed.

Legislative Status

The draft CIT law has not yet been published. It is expected that the primary legislation will establish the core framework of the regime, with detailed rules, compliance obligations, and administrative procedures to be set out in subsequent implementing regulations.

The draft law has been referred to the Council of Representatives and will undergo review by the Legislative and Legal Affairs Committee as part of the formal legislative process.

Business Implications

The proposed introduction of CIT forms part of Bahrain’s Economic Vision 2030 and its ongoing efforts to diversify government revenues. For businesses operating in Bahrain  particularly those that have historically benefited from a tax-neutral environment, this represents a material development.

Companies should begin assessing the potential impact on profitability, group structuring, reporting systems, transfer pricing considerations, and regional tax planning strategies ahead of the anticipated 2027 implementation.

Further updates will follow once the draft legislation is published. Businesses may wish to seek early advisory support to prepare for the transition.

Key Links: Bahrain announces proposed introduction of corporate - Al Tamimi & Company

Tax Insights - Introduction of CIT in Bahrain

Bahrain’s Cabinet approves financial initiatives to strengthen stability and sustain citizen support

UAE INFLUENCERS MUST OBTAIN ADVERTISER PERMIT UNDER NEW MEDIA LAW

Summary: From 1 February 2026, anyone advertising online from within the UAE must obtain an Advertiser Permit from the UAE Media Council under Federal Media Law No. 55 of 2023. The rule applies to both paid and unpaid promotional content across digital platforms, formalising influencer marketing as a regulated activity. Non-compliance may result in fines and administrative penalties, and brands must ensure the influencers they engage are properly licensed.

In Detail: From 1 February 2026, all individuals and entities advertising online from within the UAE must hold a valid Advertiser Permit issued by the UAE Media Council. The requirement applies to both paid and unpaid promotional content across all digital platforms, including social media, websites, blogs, and online publications, regardless of follower count or whether financial compensation is involved.

The measure is introduced under Federal Media Law No. 55 of 2023 as part of the UAE’s broader overhaul of its media and advertising framework. It formalises influencer marketing as a regulated commercial activity and aims to enhance transparency, accountability, and consumer protection in the fast-growing digital advertising sector.

The definition of “advertising” is broad and captures sponsored posts, gifted collaborations, affiliate marketing, brand endorsements, and any content involving commercial intent. Purely personal, non-commercial content and individuals promoting their own registered businesses are generally excluded.

Resident influencers must hold the appropriate trade or freelance licence in addition to the Advertiser Permit, which is valid for one year and renewable. A short-term permit is available for visiting creators through licensed UAE agencies. Permit holders must comply with Media Council content standards and display their permit number on their profiles.

Non-compliance may result in financial penalties and administrative sanctions. Brands and agencies are also expected to verify that creators they engage hold valid permits.

With enforcement beginning in February 2026, influencers and businesses should take steps now to ensure they meet the new regulatory requirements.

Key Links: UAE Influencers to Obtain Advertiser Permit from February 1, 2026

https://uaemc.gov.ae/en/visitor-advertiser-permit