Article 65 - Elections

A Filing Constituent Entity shall make an Election or revoke it in the manner prescribed by the Bureau.

The following elections shall have effect for a period of five Fiscal Years, commencing on the first day of the Fiscal Year in respect of which the election is made:

1. Election of not treating an Entity as an Excluded Entity as referred in Paragraph B of Article 4 of the Law.

2. Election for Stock-based Compensation as referred in Article 14 of these Regulations.

3. Foreign exchange hedge election as referred in Article 15 of these Regulations.

4. Election of the realisation method for gains or losses as referred in Article 16 of these Regulations.

5. Election to recognise dividends from Portfolio Shareholdings as referred in Article 20 of these Regulations.

6. Equity Investment Inclusion election as referred to in Article 21 of these Regulations.

7. Consolidation Adjustment election as referred in Article 24 of these Regulations.

8. Investment Entity or Insurance Investment Entity Tax Transparency election as referred in Article 60 of these Regulations.

9. Taxable Distribution Method election as referred in Article 61 of these Regulations.

10. Election to use either the Presentation Currency of the Consolidated Financial Statements of the Ultimate Parent Entity or Bahraini Dinar as referred in Article 72 of these Regulations.

For the purposes of Paragraph C of Article 20 of the Law, a revocation of the election shall be valid for a period of five Fiscal Years, starting from the end of the Fiscal Year for which the revocation notice is filed.

The following elections shall be in effect only for the Fiscal Year in respect of which the election was made, and shall be renewed annually if needed for any subsequent Fiscal Year:

1. Election not to apply Substance-based Income Exclusion as referred in Paragraph B of Article 9 of the Law.

2. Election for the De Minimis Exclusion as referred in Paragraph A of Article 12 of the Law.

3. Election to adjust gains from the disposal of immovable property located in the Kingdom as referred in Article 17 of these Regulations.

4. Debt release election as referred in Article 19 of these Regulations.

5. Unclaimed Accrual Election as referred in Paragraph G of Article 33 of these Regulations.

6. Loss Election as referred in Article 35 of these Regulations.

7. An election in relation to a decrease in Covered Taxes as referred to in Paragraph C of Article 36 of these Regulations.

8. Excess Negative Tax Expense election as referred to in Article 51 of these Regulations.

For the purposes of Clause 3 of Paragraph D of this Article, the election shall be made in respect of each debt release which is included in the Financial Accounting Net Income or Loss of a Constituent Entity in a Fiscal Year.