Reviewed against the Decree-Law and official sources

Scope and charging provisions

Article 3 — Scope of the tax

Charges tax on Bahrain constituent entities and qualifying joint ventures where consolidated revenue reaches at least EUR 750 million in at least two of the four preceding fiscal years, adjusted for short or long periods.

Short answer

Charges tax on Bahrain constituent entities and qualifying joint ventures where consolidated revenue reaches at least EUR 750 million in at least two of the four preceding fiscal years, adjusted for short or long periods.

What should you do now?Test each of the four preceding fiscal years, adjust for period length and document the two qualifying years before moving to entity scope.

Provision in brief

What does the official Article provide?

The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.

Charges tax on Bahrain constituent entities and qualifying joint ventures where consolidated revenue reaches at least EUR 750 million in at least two of the four preceding fiscal years, adjusted for short or long periods.

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.

Madar explanation

What does the Article mean in plain language?

The threshold tests consolidated group revenue, not the Bahrain entity's sales alone. Revenue of excluded entities still counts for the revenue test even though those entities are excluded from the charge.

Who should read this?

MNE groups, Bahrain entities, joint ventures and tax and accounting teams.

Practical action

Test each of the four preceding fiscal years, adjust for period length and document the two qualifying years before moving to entity scope.

Illustrative Madar example

How can the rule appear in practice?

If consolidated revenue was EUR 780m, 730m, 760m and 740m, the test is met in two years; Bahrain entities and exclusions must then be assessed.

This is an illustration only, not an NBR case or a binding outcome for a specific fact pattern.
Common mistake to avoid

Treating one qualifying year, or Bahrain-only revenue, as sufficient.

Complete picture

Related Articles

Limits of the commentary

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.

References

Official sources