Defines eligible Bahrain property, equipment, natural resources and use rights, exclusions and the average carrying-value method.
What should you do now?Maintain location and value records for each asset and exclude assets held for sale or investment and other non-qualifying items.
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 Bahrain property, equipment, natural resources and use rights, exclusions and the average carrying-value method.
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?
Include specified Bahrain tangible assets and eligible rights of use, subject to sale/investment and shipping exclusions and operating-lessor provisions. Use the prescribed adjusted opening-and-closing average, not purchase price or market value alone. Apply the more-than-50% location test and time apportionment at 50% or less. Shared-use and lessee-right-of-use rules prevent both parties from claiming the full asset value.
Tax, accounting and financial-modelling teams responsible for the final computation.
Maintain location and value records for each asset and exclude assets held for sale or investment and other non-qualifying items.
Using total balance-sheet assets or ignoring the lessee right-of-use adjustment for a lessor.
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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.