GTL Summary:

Election rules for tax computation currency (BHD vs. UPE Presentation Currency) and conversion methods using Bahrain Central Bank rates.

Document Type: ERS - Executive Regulations
Law: DMTT Law (Decree Law No. 11 of 2024)
Decision Number: executive-regulations-172-article-72
Year: 2024
Country: 🇧🇭 Bahrain
Official Name: Article 72 - Computation and Payment Currency
Last updated at: 2026-02-23 12:13:40 UTC

Chapter 8 - Administrative Procedures

Article 72 - Computation and Payment Currency

  1. Where all of the Constituent Entities of a Multinational Enterprise Group that are located in the Kingdom use Bahraini Dinar as their Presentation Currency, the computation of Tax shall be made in Bahraini Dinar.

  2. Where one or more of the Constituent Entities of a Multinational Enterprise Group that are located in the Kingdom do not use Bahraini Dinar as their Presentation Currency, the Filing Constituent Entity shall make an election for Tax for the computation of Tax to be made either in Bahraini Dinar or in the Presentation Currency of the Consolidated Financial Statements of the Ultimate Parent Entity.

  3. Any amounts taken into account for the computation of Tax that require conversion into Bahraini Dinars or into the Presentation Currency of the Consolidated Financial Statements of the Ultimate Parent Entity, as the case may be, shall be converted in accordance with the rules under the Acceptable Financial Accounting Standard or the Authorised Accounting Financial Standard used by the Multinational Enterprise Group.

  4. The amount of Tax computed in a currency other than Bahraini Dinars shall be converted into Bahraini Dinars for reporting and payment of Tax using the average foreign exchange rate for the Fiscal Year as determined using rates provided by the Central Bank of Bahrain or a reliable source of foreign exchange rates, provided the same source is used consistently. The Bureau shall publish a list of reliable sources of foreign exchange rates for which may be used for the purposes of this Paragraph.

  5. A Filing Constituent Entity shall use the same currency conversion method continuously to calculate all amounts throughout the Fiscal Year.

  6. A Filing Constituent Entity shall keep records documenting the reason for selecting a method for currency conversion, rates used, rationale and mechanisms applied to all currency conversion accounts.

  7. The election referred to in Paragraph B of this Article is a Five-Year Election which can be made in accordance with Article 20 of the Law.

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