Determines when computation uses BHD or the consolidated reporting currency and how the result is translated into BHD using a consistent exchange-rate source.
What should you do now?Document the currency election, rate source and annual average and apply them consistently.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Determines when computation uses BHD or the consolidated reporting currency and how the result is translated into BHD using a consistent exchange-rate source.
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?
Use BHD where all Bahrain entities present in BHD. Otherwise elect BHD or the UPE consolidated presentation currency for five years. Convert computation items under the applicable accounting standard, but convert tax calculated in another currency for reporting and payment using the Fiscal Year's average rate from a consistently used acceptable source. This differs from the December average for euro-denominated thresholds. Retain methodology, rates, source and rationale.
The filing entity and compliance, finance, legal and governance teams.
Document the currency election, rate source and annual average and apply them consistently.
Using payment-day rates throughout or confusing tax-payment and euro-threshold conversion.
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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.