Details Bahrain entities' liability on joining, leaving or moving and the continuing joint liability for the membership year.
What should you do now?Include tax exposures in acquisition and disposal due diligence and indemnity arrangements.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Details Bahrain entities' liability on joining, leaving or moving and the continuing joint liability for the membership year.
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?
A joining entity incurs the prescribed joint liability for its joining year. A departing or relocating entity remains liable for membership years, including the entire departure or relocation year. The rule also covers Bahrain JVs and subsidiaries. A sale agreement allocating costs between buyer and seller does not by itself change NBR's statutory rights. Review contractual indemnities, earlier periods and potential adjustments before transfer.
The filing entity and compliance, finance, legal and governance teams.
Include tax exposures in acquisition and disposal due diligence and indemnity arrangements.
Assuming liability ends immediately on sale or relocation.
Related Articles
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.