Allows an exclusion based on qualifying payroll and tangible assets, using transitional percentages that move to 5% under the detailed rules.
What should you do now?Classify eligible employees, payroll and tangible assets and their location, then apply the percentage for the relevant fiscal year.
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 exclusion based on qualifying payroll and tangible assets, using transitional percentages that move to 5% under the detailed rules.
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 a general payroll or asset exemption or a deduction from revenue; it is a defined component of taxable income requiring eligibility, correct percentages and period.
Tax, accounting, reporting and transfer-pricing teams in large groups.
Classify eligible employees, payroll and tangible assets and their location, then apply the percentage for the relevant fiscal year.
Using market value or total payroll without testing eligibility.
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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.