Creates a carryforward for excess negative tax expense and prescribes its later reduction before ETR computation.
What should you do now?Maintain a roll-forward by origin year, utilisation and remaining balance.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Creates a carryforward for excess negative tax expense and prescribes its later reduction before ETR computation.
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?
Remove excess negative tax expense from adjusted taxes and establish the prescribed carry-forward. In a later year with net income and adjusted taxes, use it to reduce taxes no lower than zero and reduce the carry-forward by the same amount. The balance remains with the group on an entity disposal and applies if the group later returns to Bahrain after disposing of all local entities. Track it at group level, not only in the sold entity's file.
Tax, accounting and financial-modelling teams responsible for the final computation.
Maintain a roll-forward by origin year, utilisation and remaining balance.
How can the rule appear in practice?
With a carry-forward of 100 and eligible adjusted taxes of 60, reduce taxes to zero and carry forward 40, assuming the year's conditions are met.
This illustration is not an NBR case or a binding outcome for a particular fact pattern.Reducing taxes below zero on use or automatically transferring the balance to an acquirer.
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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.