Defines eligible compensation, employees and location while excluding capitalised amounts, excluded shipping costs and specified cases.
What should you do now?Link each cost to an eligible employee and work location and confirm it is neither capitalised nor tied to excluded income.
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 eligible compensation, employees and location while excluding capitalised amounts, excluded shipping costs and specified cases.
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?
Eligible payroll includes specified direct personal benefits and may cover independent contractors in ordinary operations under group direction and control. Exclude costs capitalised in eligible assets and costs attributable to excluded shipping income. More than 50% of working time in Bahrain engages Paragraph C; at 50% or less with some Bahrain work, cap costs using Bahrain working days divided by total working days. The denominator is working time, not calendar days.
Tax, accounting and financial-modelling teams responsible for the final computation.
Link each cost to an eligible employee and work location and confirm it is neither capitalised nor tied to excluded income.
Counting capitalised payroll in both payroll and assets or using calendar instead of working days.
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Before relying on the result
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.