Defines a joint venture and its subsidiaries and requires a standalone computation as if they formed a separate group headed by the joint venture.
What should you do now?Check accounting method, ownership, subsidiaries and permanent establishments, then establish a separate computation perimeter.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Defines a joint venture and its subsidiaries and requires a standalone computation as if they formed a separate group headed by the joint venture.
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?
Equity accounting and at least 50% ownership are central. The joint venture result is not automatically blended with the group's other Bahrain entities.
Tax, accounting, reporting and transfer-pricing teams in large groups.
Check accounting method, ownership, subsidiaries and permanent establishments, then establish a separate computation perimeter.
Treating every co-investment as a statutory joint venture or blending its result with the ordinary group computation.
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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.