Strategic Tax Guidance for High-Risk, High-Value Industries
At Manal Dhahi Legal Consultants, we understand that construction, contracting, and real estate are not only operationally complex — they are also tax-sensitive sectors with serious legal implications if mishandled. Whether it's VAT application on phased billing, transfer fees in real estate transactions, or tax disputes with the National Bureau for Revenue (NBR), one wrong move can lead to penalties, project delays, and reputational harm.
Our firm offers comprehensive tax law services tailored specifically to Bahrain’s construction, real estate, and engineering sectors. Led by the experienced and trusted Mrs. Manal Ali Abbas Dhahi, we provide smart, lawful, and commercially sound tax guidance that keeps your projects compliant, efficient, and audit-ready.
We help contractors, developers, property brokers, and engineering firms with:
• Accurate VAT planning, invoicing, and compliance
• Tax-efficient structuring of property and lease transactions
• Audit defense and tax dispute resolution
• Risk mitigation in cross-border contracting and consulting
• Strategic advice on capital gains, transfer fees, and withholding tax
Contact usWhy Tax Law Matters in Construction and Real Estate
In Bahrain, taxation in construction and real estate is evolving rapidly, particularly with the introduction and expansion of VAT. Businesses working in long-term, multi-phase, and cross-border environments face unique challenges such as:
• Differentiating taxable vs. exempt services
• Understanding VAT treatment for subcontractors
• Handling retention payments and variation orders
• Navigating transfer tax implications in property sales
• Managing tax across different project jurisdictions or free zones
Without professional legal support, companies can:
• Overpay taxes unnecessarily
• Miss opportunities for lawful VAT recovery
• Face fines, delays, or compliance failures during audits
Manal Dhahi Legal Consultants positions your business for tax success, with proactive planning, thorough documentation, and expert representation in all legal matters involving taxation.
Our Values and Principles
Tax law is more than numbers — it’s about legal interpretation, contract clarity, and regulatory risk. That’s why we bring the following values to every tax-related case:
Precision & Compliance
Every VAT rate, tax clause, and invoice format matters. We review, guide, and correct your tax strategy with a lawyer’s attention to detail.
Strategic Structuring
We think ahead — ensuring that your contract language, project milestones, and billing phases match Bahrain’s legal and tax framework.
Confidentiality & Integrity
We treat every financial audit, objection, or restructuring plan with absolute discretion. You can trust us with your most sensitive data.
Legal Strength in Disputes
From NBR audits to court appeals, we protect your rights and fight unjust penalties — with expert advocacy and a solid legal foundation.
Our Tax Law Expertise
Manal Dhahi Legal Consultants is uniquely positioned to support construction, real estate, and engineering firms in managing tax risk. We bridge the gap between accounting, tax law, and contract law — giving you legal protection that accountants alone cannot provide.
Our legal team has handled:
• Complex VAT issues on multi-stage projects
• Tax investigations related to underreported project revenue
• Disputes over VAT on property leases and transfers
• VAT input credit errors that triggered compliance notices
• Legal reviews of tax exposure in high-value contracts
We don’t just apply tax codes — we analyze them through a legal lens, spot loopholes and liabilities, and ensure your business stands on firm ground with every regulator, partner, and investor.
Key Tax Law Services We Offer
1. VAT Advisory for Construction & Contracting
We ensure that your VAT handling is fully aligned with Bahrain’s laws at every stage of your project.
Our services include:
• Clarifying VAT treatment for:
◦ Main contractors vs. subcontractors
◦ Supply-only vs. supply-and-install contracts
◦ Retention payments and variation orders
• Guidance on tax invoicing formats and payment timelines
• Helping you claim input VAT credit properly — avoiding missed recovery
• Protecting you from penalties and reassessments by the National Bureau for Revenue (NBR)
• Advising on zero-rating and exemptions where applicable
2. Real Estate Tax Structuring & Sale Transactions
Property sales, leases, and developments can trigger significant tax risks. We help you navigate every legal and financial layer.
We support:
• Proper VAT calculation for property transfers
• Legal structuring of deals to minimize VAT or fees
• Distinguishing residential vs. commercial VAT treatment
• Handling leasehold vs. freehold taxation differences
• Advising on capital gains exposure (if applicable)
• Reviewing real estate marketing and investment models for tax compliance
3. Tax Risk in Construction Contracts
Hidden tax risks in your contracts can lead to surprise liabilities. We provide legal reviews to ensure clarity, fairness, and compliance.
We handle:
• Review and drafting of tax responsibility clauses
• Clarifying which party bears VAT on payments
• Spotting risks in withholding tax for foreign contractors
• Resolving disputes over tax-inclusive vs. tax-exclusive pricing
• Structuring contracts to align with phased billing and milestone payments
• Mitigating delayed VAT payments caused by contract misalignment
4. Dispute Resolution with the National Bureau for Revenue (NBR)
Tax audits, reassessments, or investigations can paralyze a project. We defend your rights and resolve tax conflicts efficiently.
We assist in:
• Filing formal objections to VAT reassessments or penalties
• Preparing defense documentation during NBR audits
• Negotiating settlement terms where applicable
• Drafting legal submissions and appeal memos
• Representing you before Bahrain’s Tax Appeals Committee
5. Tax Support for Engineering & Consulting Firms
Engineering consultants, architects, and freelance professionals face tax exposure, especially in cross-border or project-based work.
We provide:
• Legal structuring for international contracts to handle withholding tax
• Support for VAT registration and compliance for small consultancies
• Invoicing structure advice to comply with Bahrain’s VAT law
• Assistance with reverse charge mechanisms in cross-border deals
• Defense in case of VAT underreporting or invoice discrepancies
Why You Need Legal + Tax Advisors Not Just Accountants
Most businesses rely on accountants or auditors to handle their taxes — but in construction and real estate, that’s often not enough.
Why?
• Accountants can't defend you in legal audits or court
• They may miss contract-related tax risks
• They cannot file legal objections to NBR decisions
• They may not fully grasp Bahrain’s real estate laws, regulatory requirements, or international tax risks
At Manal Dhahi Legal Consultants, we bridge the gap:
Legal and tax review of contracts
Audit and investigation support
Defense in formal disputes with the NBR
Structuring deals for VAT and property tax efficiency
Filing formal legal objections to protect your business
We work alongside your accountant or internal finance team — but bring legal muscle and court-ready strategy when it matters most.
Our Achievements
At Manal Dhahi Legal Consultants, we have built a strong track record of success by combining legal precision with practical commercial insight. Our work in tax law for construction, contracting, and real estate companies has consistently delivered measurable outcomes and long-term compliance protection for our clients.
Some of our general achievements include:
• Successfully advising numerous construction and engineering companies on VAT compliance across multimillion-dinar infrastructure projects.
• Structuring complex real estate transactions to minimize tax exposure while ensuring full compliance with Bahraini regulations.
• Supporting clients during sensitive tax audits and investigations, resulting in reduced penalties and faster case resolutions.
• Leading objections and appeals that have reversed unfavorable tax assessments from the National Bureau for Revenue (NBR).
• Drafting and revising hundreds of commercial and construction contracts to ensure tax clauses are accurate, enforceable, and clearly allocated.
• Helping businesses establish long-term tax planning strategies aligned with their operational goals and regulatory obligations.
• Providing confidential legal consultations to board members and financial controllers on cross-border tax issues, VAT recoverability, and transfer pricing risks.
• Building a reputation as a trusted legal partner for companies navigating Bahrain’s evolving tax landscape.
Our achievements reflect our commitment to excellence, discretion, and strategic thinking — qualities that define Mrs. Manal Ali Abbas Dhahi’s leadership and the caliber of our entire legal team.
Yes, but classification (standard rate vs. zero-rated) depends on the type of service and location of the project.
Yes, if the invoices are valid and linked to taxable output. We help ensure proper documentation.
The NBR reviews contracts, invoices, and filings. We guide and represent you throughout.
Yes — often due to errors in documentation or contract wording. We help file objections.
Yes, but only when the retention is released or invoiced. We ensure correct treatment.
Commercial leases usually do. Residential leases are typically exempt.
They are government fees, but affect deal costs. Legal review is critical.
Sometimes — depending on location of service and contract terms.
It applies to payments to foreign entities. We ensure legal compliance and contract clarity.
Yes. We help companies, engineers, and freelancers register properly.
We advise on phased VAT handling, billing timing, and reporting compliance.
We can file legal objections and protect your company from full liability.
Yes, through variation orders or legal addenda.
If you import services, yes. We help you handle this correctly.
Pricing clarity is crucial. We draft and revise clauses to avoid disputes.
Yes — especially those with joint ventures, consultants, or projects in Bahrain.
Typically 4–8 weeks, depending on complexity. We manage the full process.
Sometimes, yes. We negotiate and advocate on your behalf.
Yes — and penalties can accumulate quickly. We help prevent and mitigate them.
Legal advice protects your contracts, rights, and court strategy. We offer that.
Yes. We are licensed to act in all legal proceedings related to taxation.
Because we offer deep legal knowledge, sector-specific tax insight, and proven results. Mrs. Manal Dhahi leads every case with dedication, clarity, and experience.
Contact Us
Protect Your Business from Costly Tax Risks — Partner with a Legal Team That Understands Your Industry.
Whether you’re facing a tax dispute, contract review, or audit risk, Manal Dhahi Legal Consultants offers the legal strength and commercial knowledge to secure your business future.