De minimis exclusion
Three-year averages and an annual election.
Zero-tax route · NBR Guide v1.2
Can tax be zero even when the group is in scope?
Yes, but not for one reason. Select the mechanism to receive a preliminary route, its limits and the obligations that remain — without entering business data or performing a numerical calculation.
This workflow is indicative; it neither determines eligibility nor computes tax. Each fiscal year must be assessed separately against current legislation, guidance and the group's actual facts.
Five distinct routes
A zero result is not a general exemption
Zero may result from an exclusion, a safe harbour or the full computation itself. Each route has different conditions, data, elections and timing.
Transitional CbCR Safe Harbour
A limited period, qualified data and one of three tests.
Initial international activity
Five years plus jurisdiction, asset and IIR limits.
Full-computation outcome
A 15% ETR or no excess profit.
Simplified computation
A legislative framework; operational detail is pending.
Transitional safe harbour
Timing and tests that must not be mixed
One of the three tests is enough, but qualified data, the transitional window and the exit rule must be respected.
Simplified ETR test threshold.
Simplified ETR test threshold.
The year begins on or before this date and does not end after 30 June 2028.
Bahrain revenue is below EUR 10 million and profit before tax is below EUR 1 million for the fiscal year.
The simplified rate reaches the applicable transition threshold: 16% for a year beginning in 2025 and 17% for one beginning in 2026.
Bahrain profit before tax does not exceed the substance-based income exclusion computed under the rules.
Boundary of the OECD's 2026 update
International safe-harbour updates were issued in January 2026, but Madar does not treat them as automatically changing Bahrain application. The NBR guide's published dates control until an effective Bahrain instrument or official update is issued.
What remains
Zero tax does not mean zero obligations
This is the point most easily misunderstood, so no zero result is shown without it.
The distinction confirmed by the new Return Manual
A failed Revenue Test is not a zero result inside scope. The registered entity must file the notification and may elect not to file the full return. The five mechanisms above operate after scope is established, so a zero tax result alone does not remove the return.
Open the annual filing workflowWorkflow sources
Law, Regulations and guidance together
Guidance explains operation but does not replace the Law and Regulations or turn an international update into Bahrain law.
DMTT Return Filing Manual — v1.1 · August 2026Separates the Revenue Test Notification from the full return and central or local filing.
Guide to scope and registration requirements — v1.2Current operational source for safe harbours, exclusions and zero-tax outcomes.
FAQs — exclusions and safe harboursThe NBR section explaining reduction to zero while obligations remain.
Decree-Law No. 11 of 2024Articles 10 and 12–15, together with the core computation.
Executive Regulations — Decision No. 172 of 2024Details in Articles 46, 54, 56, 57 and 90.