Determines the revenue included in the group test, aggregation of separate revenue lines, and preceding years without consolidated statements because the group’s entities were newly created.
What should you do now?Prepare the four-year schedule with each year’s duration, applicable threshold, total revenue and reconciliation items. Distinguish a year absent because of new creation from a year whose evidence is missing.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Determines the revenue included in the group test, aggregation of separate revenue lines, and preceding years without consolidated statements because the group’s entities were newly created.
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 3
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)
اختبار مستوى الإيرادات
لأغراض تطبيق أحكام اختبار مستوى الإيرادات المنصوص عليه في الفقرة (ج) من المادة (3) من القانون، يجب تطبيق جميع ما يلي:
أ- يتم تحديد الإيرادات وفقًا للقوائم المالية الموحدة ويجب أن تشمل تدفق المنافع الاقتصادية الناتجة عن الأنشطة الاعتيادية لمجموعة المشاريع متعددة الجنسيات، بما في ذلك تسليم أو إنتاج السلع، أو تقديم الخدمات، أو الأنشطة الأخرى ذات الصلة.
ب- يجب إجراء التعديلات التالية عند تحديد الإيرادات، وذلك بالحد الذي ينطبق:
1- يجب إدراج صافي الأرباح المحققة وغير المحققة من الاستثمارات التي يتم التصريح عنها في قائمة الأرباح والخسائر للقوائم المالية الموحدة ضمن الإيرادات.
2- يجب إدراج الدخل أو الأرباح التي تُعرض بشكل منفصل كعناصر استثنائية أو غير متكررة في القوائم المالية الموحدة ضمن الإيرادات.
ج- في حال إدراج أنواع مختلفة من الإيرادات بشكل منفصل في قائمة الأرباح والخسائر في القوائم المالية الموحدة، يجب جمع هذه المبالغ لأغراض تطبيق اختبار مستوى الإيرادات.
د- عندما لا يكون لدى مجموعة المشاريع متعددة الجنسيات قوائم مالية موحدة لأي من السنوات المالية الأربع التي تسبق السنة المالية الواجب الإقرار عنها بسبب إنشاء الكيانات التي تُشكل لمجموعة المشاريع متعددة الجنسيات حديثًا، تكون الإيرادات السنوية لأي سنة مالية تسبق السنة المالية الواجب الإقرار عنها لا تساوي أو لا تتجاوز سبعمائة وخمسين مليون يورو.
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?
Law Article 3(C) supplies the threshold and period: consolidated revenue of at least EUR 750 million in at least two of the four fiscal years immediately preceding the year examined. Adjust the threshold proportionately for any reference year longer or shorter than twelve months; that rule comes from the Law.
Build the revenue figure from the consolidated statements and aggregate separately presented revenue categories. Include net realised and unrealised investment gains recognised in the profit and loss statement, and income or gains presented as extraordinary or non-recurring. Using the sales line alone can therefore understate revenue for this test.
A preceding year without consolidated statements because the group’s constituent entities were newly created is treated as below the threshold. Missing documents for an existing year are not equivalent to this condition. The rule does not replace the merger and demerger provisions in Regulations Article 37. Revenue of excluded entities remains included under Law Article 3(D).
MNE groups, Bahrain entities, registration teams and group-structure teams.
Prepare the four-year schedule with each year’s duration, applicable threshold, total revenue and reconciliation items. Distinguish a year absent because of new creation from a year whose evidence is missing.
How can the rule appear in practice?
For a twelve-month reference year, ordinary-activity revenue is EUR 730 million and net investment gains of EUR 25 million are recognised in profit or loss. If those gains are not already included in the first figure, test revenue is EUR 755 million. That year meets the threshold; the other years still determine whether the two-year condition is met.
This illustration is not an NBR case or a binding outcome for a particular fact pattern.Testing only the Bahrain company’s sales, omitting non-recurring gains and excluded-entity revenue, or applying a full-year threshold to a shorter reference period.
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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.
Official sources
Complete official Arabic text — 93 Articles across 97 pages.
The primary legislation detailed by this Article.
The official guide most closely connected to this Article and its procedures.