Makes Bahrain group entities, or a joint venture and its subsidiaries, jointly liable for tax and penalties and may extend liability through certain flow-through entities to non-individual owners.
What should you do now?Manage tax and penalty exposure across all Bahrain entities and address internal recourse contractually without assuming it binds the NBR.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Makes Bahrain group entities, or a joint venture and its subsidiaries, jointly liable for tax and penalties and may extend liability through certain flow-through entities to non-individual owners.
This is a verified summary, not a substitute quotation. The complete official Arabic text is linked below and must be read with the Regulations and later decisions for a final decision.
Arabic text of Article 29
The official source is Arabic. The English content on this page is explanatory and is not presented as an official translation.
Show the Article as published (Arabic)
المسئولية التضامنية
أ- يكون مسئولاً بالتضامن عن سداد الضريبة والغرامات الإدارية كل من:
1- الكيانات المشاركة لذات مجموعة مشاريع متعددة الجنسيات فيما يتعلق بالضريبة المستحقة والغرامة المفروضة على الكيان المشارك المكلف بالإقرار.
2- مشروع مشترك أو واحدة أو أكثر من الشركات التابعة لمشروع مشترك فيما يتعلق بالضريبة المستحقة والغرامة المفروضة على الكيان المشارك المكلف بالإقرار.
ب- إذا كان الكيان المسؤول عن الضريبة بموجب نص الفقرة (أ) من هذه المادة كياناً يمرر الدخل ولا يعد شخصاً اعتبارياً، فإن أي شخص، غير الشخص الطبيعي، يمتلك حصص ملكية فيه خلال السنة المالية أو عن أي فترة خلال تلك السنة، يكون مسئولاً بالتضامن عن سداد الضريبة والغرامات الإدارية.
Source: Decree-Law No. 11 of 2024, Legislation and Legal Opinion Commission (lloc.gov.bh).
What does the Article mean in plain language?
Appointing one filing entity does not ring-fence exposure; another member may be pursued under joint liability.
Entities receiving an information request, assessment, penalty or NBR decision and their advisers.
Manage tax and penalty exposure across all Bahrain entities and address internal recourse contractually without assuming it binds the NBR.
Assuming a non-filing entity cannot be liable for the filing entity's amounts.
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Is the Article enough on its own?
Usually not. The Decree-Law states the rule, the Regulations detail the computation or procedure and guidance explains application. Use all three for an obligation, amount or deadline.
Are OECD materials binding by themselves?
Not every international document is Bahrain legislation by itself. It is used within the Law's referrals or a competent adoption instrument, while current Bahrain legislation and decisions remain controlling.