Article 1
Definitions
Defines the principal national terms and refers the remaining terms to the Unified GCC Agreement.
Read the Article and commentary33 Articles with complete commentary
Understand the Excise Tax Law Article by Article
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Law No. 40 of 2017
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- 33 commentaries
01Topic 1 · Articles 1–3What is Excise Tax, and which goods and rates does the Law start with?
Preliminary provisions
What is Excise Tax, and which goods and rates does the Law start with?
Preliminary provisions
This topic is relevant if:Anyone checking the Law's scope before registration or calculation.
Article 2
Relationship with the GCC Agreement
Makes the GCC Agreement the supplementary reference where Bahrain's Law has no specific provision.
Read the Article and commentaryArticle 3
Goods and rates
Sets tobacco at 100%, carbonated drinks at 50%, and energy drinks at 100%.
Read the Article and commentary02Topic 2 · Articles 4–6When is a good released for consumption, and can it move without immediate payment?
Charge, liability and suspension
When is a good released for consumption, and can it move without immediate payment?
Charge, liability and suspension
This topic is relevant if:Producers, importers, warehouses and businesses moving goods under suspension.
Article 4
Release for consumption
Leaves the mechanism and procedures for release for consumption to the Executive Regulations.
Read the Article and commentaryArticle 5
Movement under suspension
Allows domestic movement of goods under tax suspension in accordance with the Regulations.
Read the Article and commentaryArticle 6
Free zones and markets
Leaves procedural rules for free zones and markets to the Regulations.
Read the Article and commentary03Topic 3 · Articles 7–10Must I register, and when do I report a change or cancel registration?
Excise registration
Must I register, and when do I report a change or cancel registration?
Excise registration
This topic is relevant if:Anyone importing, producing or holding excise goods under suspension.
Article 7
Who must register
Requires a person intending to import, produce or hold goods under suspension to apply for registration.
Read the Article and commentaryArticle 8
Reporting changes
Requires a registrant to promptly report circumstances that may affect registration.
Read the Article and commentaryArticle 9
Registration cancellation
Covers cancellation on request or for inactivity and requires written notice of the decision.
Read the Article and commentaryArticle 10
Registrant responsibilities
Makes the registrant responsible for safeguarding goods and enabling supervision, plus duties set by the Regulations.
Read the Article and commentary04Topic 4 · Articles 11–13When do I need a tax warehouse, and how does its licence begin or end?
Tax-warehouse licensing
When do I need a tax warehouse, and how does its licence begin or end?
Tax-warehouse licensing
This topic is relevant if:A registrant wishing to produce or store goods under tax suspension.
Article 11
Licence and management conditions
Requires registration first, followed by the licensing and warehouse-management conditions in the Regulations.
Read the Article and commentaryArticle 12
Licence term and renewal
Leaves the licence term, renewal and amendment rules to the Regulations.
Read the Article and commentaryArticle 13
Cancellation and expiry
Covers cancellation, transfer to a successor and the treatment of goods remaining when a licence ends.
Read the Article and commentary05Topic 5 · Articles 14–15When do I file, and how is tax collected on imports or local production?
Returns and payment
When do I file, and how is tax collected on imports or local production?
Returns and payment
This topic is relevant if:Registrants, importers and local producers responsible for filing or payment.
Article 14
Return and tax period
Requires a registrant to file for a period set by the Regulations and permits conditional importer exemptions.
Read the Article and commentaryArticle 15
Collection and payment
Distinguishes customs collection for imports from payment when local production is released for consumption.
Read the Article and commentary06Topic 6 · Articles 16–16Who may be exempt, and what about travellers' personal goods?
Exemptions
Who may be exempt, and what about travellers' personal goods?
Exemptions
This topic is relevant if:Diplomatic missions, international bodies and arriving travellers with non-commercial goods.
07Topic 7 · Articles 17–18When can I recover Excise Tax already paid?
Tax refunds
When can I recover Excise Tax already paid?
Tax refunds
This topic is relevant if:Exporters, manufacturers using excise goods in other excise goods, and GCC movers.
Article 17
Refund cases
Allows refunds for export outside the GCC, use in another excise good, or later movement to another member state.
Read the Article and commentaryArticle 18
Repayment of amounts received in error
Requires repayment where a refund or exemption was obtained in error.
Read the Article and commentary08Topic 8 · Articles 19–19What powers do authorised officers have during inspection and enforcement?
Judicial enforcement powers
What powers do authorised officers have during inspection and enforcement?
Judicial enforcement powers
This topic is relevant if:Operators of warehouses and shops connected with excise goods.
09Topic 9 · Articles 20–25What is the penalty for late filing or payment, and how do I object?
Administrative penalties
What is the penalty for late filing or payment, and how do I object?
Administrative penalties
This topic is relevant if:Any registrant facing a violation or administrative-penalty decision.
Article 20
Administrative violations and penalties
Sets ranges for filing and payment defaults and covers obstruction, failure to provide information and other breaches.
Read the Article and commentaryArticle 21
Tax remains due
Confirms that a penalty does not replace collection of the underlying tax.
Read the Article and commentaryArticle 22
Repeated violations
Allows a doubled penalty or licence suspension where the same breach recurs within three years.
Read the Article and commentaryArticle 23
Penalty decision and enforcement
Governs the penalty decision, possible publication and its status as an enforceable instrument.
Read the Article and commentaryArticle 24
Objection and appeal
Sets a 30-day objection period, 15 days for a decision, and a further 30-day court-appeal period as applicable.
Read the Article and commentaryArticle 25
Penalty calculation and collection
Leaves calculation and collection controls to the Executive Regulations.
Read the Article and commentary10Topic 10 · Articles 26–26Which acts does the Law treat as tax evasion?
Tax evasion
Which acts does the Law treat as tax evasion?
Tax evasion
This topic is relevant if:Anyone importing, producing, holding or moving excise goods.
11Topic 11 · Articles 27–30What are the criminal consequences, and can they reach the company, goods or vehicles?
Criminal penalties
What are the criminal consequences, and can they reach the company, goods or vehicles?
Criminal penalties
This topic is relevant if:Individuals and companies involved in evasion or a possible settlement.
Article 27
Evasion and repeat-offence penalty
Provides imprisonment, a fine or both plus payment of tax, with stronger consequences for repeat offending.
Read the Article and commentaryArticle 28
Corporate criminal liability
Imposes corporate liability where an offence is committed in the entity's name, account or interest.
Read the Article and commentaryArticle 29
Confiscation
Allows confiscation of smuggled goods and prepared transport, or their equivalent value.
Read the Article and commentaryArticle 30
Settlement
Permits settlement on stated conditions before a first-instance judgment, subject to payment of the prescribed amount and tax.
Read the Article and commentary12Topic 12 · Articles 31–33How is the Law completed and when did it enter into force?
Final provisions
How is the Law completed and when did it enter into force?
Final provisions
This topic is relevant if:Anyone checking the legal basis, Regulations and commencement date.
Article 31
Informant reward
Allows a reward for a non-employee who helps uncover a violation or offence, subject to the Regulations.
Read the Article and commentaryArticle 32
Issuing the Regulations
Requires the Minister to issue the Executive Regulations following Cabinet approval.
Read the Article and commentaryArticle 33
Implementation and commencement
Assigns implementation and brings the Law into force 15 days after official publication.
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