Provides an alternative to deferred-tax adjustment by creating a loss deferred-tax asset at the minimum rate for later use.
What should you do now?Track the loss year, asset amount, utilisation and remaining balance at Bahrain level.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Provides an alternative to deferred-tax adjustment by creating a loss deferred-tax asset at the minimum rate for later use.
This is a verified summary rather than a verbatim reproduction. Consult the official Arabic text, the Law and later decisions before making a final determination.
What does the Article mean in plain language?
The Loss Election replaces Article 33. Create a loss deferred-tax asset by multiplying the Bahrain Net Constituent Entity Loss by the Minimum Rate. In a later income year, use the lesser of the available asset and net income multiplied by that rate, carrying the unused balance forward. Respect first-return timing and flow-through conditions. Revocation extinguishes the remaining elected loss asset and requires the prescribed deferred-tax transition. Do not combine the benefits of both methods.
Financial reporting, tax, transfer-pricing and consolidation teams.
Track the loss year, asset amount, utilisation and remaining balance at Bahrain level.
Combining the elected loss asset with ordinary deferred tax for the same loss.
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Is this Article enough on its own?
Usually not. Read it with the connected Law Article, definitions, any effective election and current NBR guidance, especially for an amount or deadline.
Does NBR guidance replace the Regulations?
No. Guidance explains application and supports procedures and examples, but current legislation and decisions prevail in case of inconsistency.