English text status

English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

Two or more Bahrain-resident Taxable legal Persons may apply to register as one Tax Group if the conditions are met. Members remain jointly liable for Group obligations arising during membership.

Who should read this?

Corporate groups, Related legal Persons and holding-company finance and tax teams.

Why does it matter?

A Tax Group is not a legal merger or automatic election. It has one registration and representative and disregards internal transactions, while each member assumes real joint liability.

Application and approvalRelated registered legal PersonsJoint liability

Current text

Two or more legal Taxable Persons who reside in the Kingdom may be registered as a single Tax Group, upon their request, and after meeting the conditions and procedures specified in the Regulations. All members of the Tax Group shall be jointly liable for the Tax obligations of that Tax Group arising during their registration period. In all cases, the Bureau may amend or deregister the Tax Group in accordance with the conditions, circumstances and procedures specified in the Regulations.

Before applying for a Tax Group

  1. 1

    Confirm all members are resident, registered Taxable legal Persons.

  2. 2

    Evidence financial, economic and organisational links.

  3. 3

    Appoint a representative by official power of attorney.

  4. 4

    Assess disregarded internal transactions, joint liability and accounting-system impact.

  5. 5

    Check other-group membership and withdrawal restrictions.

Connected provisions

Direct legislative link

Regulations — Article (38)

Tax Group

It sets relationship and registration conditions, disregards internal transactions and prevents withdrawal before 12 months.

Open connected Article
Direct legislative link

Regulations — Article (39)

Tax Group representative

It requires a representative and defines duties for the application, membership changes and dissolution.

Open connected Article

Official guides and tools

Official guide

VAT Registration Guide

Tax Groups — from the official guidance page

Official FAQs

Registration FAQs

Legal entities, branches and Tax Groups

Connected Madar tools

Connected Madar tools

VAT Registration Centre

Check registration thresholds using your inputs, with mandatory, voluntary and uncertain cases distinguished.

Illustrative example by Madar

Related companies are not automatically one Group

Common ownership does not by itself create a Tax Group. Each member must be registered, the conditions and application completed, and NBR approval obtained before Group consequences arise.

Questions to help you apply it

  • Are all members resident, registered and Related legal Persons?
  • Has a representative been appointed by official power of attorney?
  • Have joint liability and internal-transaction effects been assessed?