Allows an election to use consolidated accounting eliminations for Bahrain entities in a tax-consolidated group while preventing duplication on entry or revocation.
What should you do now?Define covered entities and transactions and prepare entry and exit reconciliations for the election.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Allows an election to use consolidated accounting eliminations for Bahrain entities in a tax-consolidated group while preventing duplication on entry or revocation.
This is a verified summary rather than a verbatim reproduction. Consult the official Arabic text, the Law and later decisions before making a final determination.
Arabic text of Article 24
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)
تعديلات تتعلق بدمج القوائم المالية
أ- يجوز أن ينوب الكيان المشارك المكلف بالإقرار عن الكيان الأم النهائي الذي يقع في المملكة في اختيار تطبيق معاملته المحاسبية الموحدة لإلغاء الدخل والنفقات والأرباح والخسائر الناشئة عن المعاملات بين الكيانات المشاركة التي تقع في المملكة وتضمها مجموعة موحدة ضريبيًا، وذلك لأغراض تحديد دخل أو خسارة الكيانات المشاركة.
ب- يجب إجراء تعديلات على دخل أو خسارة أي من الكيانات المشاركة التي يسري عليها الاختيار بموجب الفقرة (أ) من هذه المادة، للسنة المالية التي يتم فيها إجراء الاختيار أو إلغاؤه، لكيلا يتم أخذ أي عنصر في الاعتبار أكثر من مرة أو استبعاده كنتيجة لهذا الاختيار.
ج- يُقصد بالاختيار المشار إليه في الفقرة (أ) من هذه المادة، ذلك الاختيار المطبق لمدة خمس سنوات الجائز إجراؤه وفقاً للمادة (20) من القانون.
Source: Executive Regulations issued by Decision No. 172 of 2024, Legislation and Legal Opinion Commission (lloc.gov.bh).
What does the Article mean in plain language?
On behalf of a Bahrain UPE, the Filing Constituent Entity may elect consolidated treatment eliminating transaction results between Bahrain Constituent Entities included in a tax consolidation group. Commercial consolidation or common ownership alone is insufficient. The election lasts five years and requires start-year and revocation-year adjustments to avoid duplication or omission. Identify eligible entities and reconcile eliminations to amounts originally included in each entity's result.
Financial reporting, tax, transfer-pricing and consolidation teams.
Define covered entities and transactions and prepare entry and exit reconciliations for the election.
Eliminating all group transactions merely because consolidated accounts eliminate them.
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Before relying on the result
Is this Article enough on its own?
Usually not. Read it with the connected Law Article, definitions, any effective election and current NBR guidance, especially for an amount or deadline.
Does NBR guidance replace the Regulations?
No. Guidance explains application and supports procedures and examples, but current legislation and decisions prevail in case of inconsistency.