Reviewed against the Decree-Law and official sources

Scope and charging provisions

Article 6 — Constituent entity income or loss

Starts from financial-accounting net income or loss before consolidation eliminations, under the local financial accounting standard where the Reg. 8(a) conditions are met, otherwise the data used for the ultimate parent's consolidated statements (Reg. 8(d)), or, where that is impracticable, another acceptable or authorised standard subject to conditions (Reg. 8(e)), subject to the adjustments detailed in the Regulations.

Short answer

Starts from financial-accounting net income or loss before consolidation eliminations, under the local financial accounting standard where the Reg. 8(a) conditions are met, otherwise the data used for the ultimate parent's consolidated statements (Reg. 8(d)), or, where that is impracticable, another acceptable or authorised standard subject to conditions (Reg. 8(e)), subject to the adjustments detailed in the Regulations.

What should you do now?Fix the accounting standard and source ledger, then maintain an adjustment register linking every adjustment to the Regulations and evidence.

Provision in brief

What does the official Article provide?

The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.

Starts from financial-accounting net income or loss before consolidation eliminations, under the local financial accounting standard where the Reg. 8(a) conditions are met, otherwise the data used for the ultimate parent's consolidated statements (Reg. 8(d)), or, where that is impracticable, another acceptable or authorised standard subject to conditions (Reg. 8(e)), subject to the adjustments detailed in the Regulations.

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.

Official legal text

Arabic text of Article 6

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)

حساب دخل أو خسارة الكيان المشارك

أ- يكون دخل أو خسارة الكيان المشارك للسنة المالية هو صافي الدخل أو الخسارة المحاسبية المالية المعدل لتلك السنة المالية.

ب- يكون صافي الدخل أو الخسارة المحاسبية هو صافي الدخل أو الخسارة للكيان المشارك للسنة المالية قبل إجراء أي تعديلات تتعلق بدمج القوائم المالية بهدف إزالة المعاملات بين أعضاء المجموعة وفقاً للمعيار المحاسبي المحلي المقبول للكيان المشارك.

ج- تضع اللائحة كافة القواعد والشروط والضوابط اللازمة لتطبيق هذه المادة وغير ذلك من المسائل بما يتسق مع القواعد النموذجية والتوجيهات الإدارية والتعليقات الصادرة عن منظمة التعاون الاقتصادي والتنمية OECD.

Source: Decree-Law No. 11 of 2024, Legislation and Legal Opinion Commission (lloc.gov.bh).

Madar explanation

What does the Article mean in plain language?

The computation does not start from another domestic tax base or from post-elimination consolidated profit; it starts with entity-level accounting data and applies Pillar Two adjustments.

Who should read this?

MNE groups, Bahrain entities, joint ventures and tax and accounting teams.

Practical action

Fix the accounting standard and source ledger, then maintain an adjustment register linking every adjustment to the Regulations and evidence.

Common mistake to avoid

Treating accounting net profit as the final taxable income without adjustments.

Complete picture

Related Articles

Limits of the commentary

Before relying on the result

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.

References

Official sources