Excludes specified amounts from covered taxes, including qualified IIR, domestic top-up tax, certain allocation taxes and policyholder amounts.
What should you do now?Classify each tax by legal nature rather than ledger label or payee.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Excludes specified amounts from covered taxes, including qualified IIR, domestic top-up tax, certain allocation taxes and policyholder amounts.
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 28
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)
الضرائب المشمولة
أ- لأغراض تطبيق أحكام الفقرة (أ) من المادة (7) من القانون، يجب ألا تتضمن الضرائب المشمولة أيًا من المبالغ الآتية:
1- الضرائب المستحقة من قبل الكيان الأم بموجب قاعدة إدراج الدخل المؤهلة (Qualified IIR).
2- الضرائب المستحقة من قبل الكيان المشارك بموجب ضريبة الحد الأدنى الإضافية المؤهلة المحلية.
3- الضرائب المنسوبة إلى تعديل تم إجراؤه من قبل كيان مشارك نتيجة لتطبيق قاعدة المدفوعات الضريبية المنخفضة المؤهلة (Qualified UTPR).
4- ضريبة الإسناد القابلة للاسترداد غير المؤهلة.
5- الضرائب المدفوعة من قبل شركة التأمين بشأن عوائد حاملي الوثائق.
6- الضريبة المفروضة بموجب القانون.
ب- تستثنى الضرائب المشمولة المتعلقة بأي ربح أو خسارة صافية ناتجة عن التصرف في ممتلكات غير منقولة تقع في المملكة في السنة المالية التي يتم فيها إجراء الاختيار بموجب الفقرة (أ) من المادة (17) من هذه اللائحة من احتساب الضرائب المشمولة.
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?
Not every accounting tax amount is a Covered Tax. Exclusions include IIR and UTPR taxes, qualified domestic minimum top-up taxes, tax under this Law and insurer taxes on policyholder returns. The property-gain election also affects related taxes. Remove excluded amounts before allocation and adjustment; otherwise the effective rate may be inflated by including the top-up tax itself in its numerator.
Financial reporting, tax, transfer-pricing and consolidation teams.
Classify each tax by legal nature rather than ledger label or payee.
Using total tax expense without exclusions or including DMTT itself.
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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.