GTL Summary:

Details the step-down percentages for payroll costs and tangible asset values used in the Substance-based Income Exclusion (SBIE) through 2033.

Document Type: ERS - Executive Regulations
Law: DMTT Law (Decree Law No. 11 of 2024)
Decision Number: executive-regulations-172-article-46
Year: 2024
Country: 🇧🇭 Bahrain
Official Name: Article 46 - Substance-based Income Exclusion
Last updated at: 2026-02-23 12:13:40 UTC

Chapter 6 - Tax Computation

Article 46 - Substance-based Income Exclusion

  1. For the purposes of Clause 1 of Paragraph A of Article 10 of the Law the Substance-based Income Exclusion shall be the sum of the following:

    1. The percentage of Eligible Payroll Costs of Eligible Employees who perform activities for Constituent Entities located in the Kingdom applicable for Fiscal Year as set out in Clause B of this Article.

    2. The percentage of the carrying value Eligible Tangible Assets located in the Kingdom for the relevant Fiscal Year as set out in Clauses C of this Article.

  2. For the purposes of Clause 1 of Paragraph A of this Article the percentages shall be the following:

    1. For Fiscal Years beginning in 2023, the percentage shall be 10%.

    2. For Fiscal Years beginning in 2024, the percentage shall be 9.8%.

    3. For Fiscal Years beginning in 2025, the percentage shall be 9.6%.

    4. For Fiscal Years beginning in 2026, the percentage shall be 9.4%.

    5. For Fiscal Years beginning in 2027, the percentage shall be 9.2%.

    6. For Fiscal Years beginning in 2028, the percentage shall be 9.0%.

    7. For Fiscal Years beginning in 2029, the percentage shall be 8.2%.

    8. For Fiscal Years beginning in 2030, the percentage shall be 7.4%.

    9. For Fiscal Years beginning in 2031, the percentage shall be 6.6%.

    10. For Fiscal Years beginning in 2032, the percentage shall be 5.8%.

    11. For Fiscal Years beginning in 2033 and in all subsequent Fiscal Years, the percentage shall be 5%.

  3. For the purposes of Clause 2 of Paragraph A of this Article the percentages shall be the following:

    1. For Fiscal Years beginning in 2023, the percentage shall be 8.0%.

    2. For Fiscal Years beginning in 2024, the percentage shall be 7.8%.

    3. For Fiscal Years beginning in 2025, the percentage shall be 7.6%.

    4. For Fiscal Years beginning in 2026, the percentage shall be 7.4%.

    5. For Fiscal Years beginning in 2027, the percentage shall be 7.2%.

    6. For Fiscal Years beginning in 2028, the percentage shall be 7.0%.

    7. For Fiscal Years beginning in 2029, the percentage shall be 6.6%.

    8. For Fiscal Years beginning in 2030, the percentage shall be 6.2%.

    9. For Fiscal Years beginning in 2031, the percentage shall be 5.8%.

    10. For Fiscal Years beginning in 2032, the percentage shall be 5.4%.

    11. For Fiscal Years beginning in 2033 and in all subsequent Fiscal Years, the percentage shall be 5%.

Fast-loading version for search engines - Click here for the interactive version