Sets tax to zero on an annual election where three-year average revenue is below EUR 10m and average income is below EUR 1m or a loss, subject to special rules.
What should you do now?Compute the current and two preceding-year averages, separate stateless and investment entities and document the annual election.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Sets tax to zero on an annual election where three-year average revenue is below EUR 10m and average income is below EUR 1m or a loss, subject to special 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 exclusion can apply even though the group met EUR 750m globally: the first test concerns group scope, while this one concerns the local three-year average.
Tax, accounting, reporting and transfer-pricing teams in large groups.
Compute the current and two preceding-year averages, separate stateless and investment entities and document the annual election.
Testing one year only or treating the exclusion as automatic without an election.
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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.