Establishes the Law's vocabulary, including entity, constituent entity, group, permanent establishment, Model Rules, tax and minimum rate.
What should you do now?Map the group, identify each entity's status, location and accounting standard before testing revenue or computing tax.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Establishes the Law's vocabulary, including entity, constituent entity, group, permanent establishment, Model Rules, tax and minimum rate.
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.
What does the Article mean in plain language?
This is not merely a glossary. Every later result depends on the applicable definition, and the legal treatment of a permanent establishment or constituent entity may differ from the group's commercial label.
Anyone beginning a group-scope review or reading any computation or obligation in the Law.
Map the group, identify each entity's status, location and accounting standard before testing revenue or computing tax.
Using a company's name or legal form alone to decide whether it is in or out of scope.
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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.