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July 2, 2026

This regulatory guide (Version 1.1, May 2025), published by the National Bureau for Revenue (NBR) of Bahrain, establishes the parameters for entities falling within or excluded from the scope of the Domestic Minimum Top-up Tax (DMTT) under Decree-Law No. 11 of 2024. It details the operational definitions for Multinational Enterprise (MNE) Groups, Ultimate Parent Entities (UPEs), and Constituent Entities based on accounting consolidation under acceptable financial standards like IFRS. The guide provides specific rules for the global EUR 750 million revenue test, detailed treatments for Joint Ventures, and outlines specific criteria for statutory 'Excluded Entities' such as government bodies, non-profit organizations, and sovereign wealth funds.

Entities in Scope of DMTT Guide

Kingdom of Bahrain — National Bureau for Revenue

Version 1.1 | May 2025

Updates to this guide

1. Introduction

1.1 Background
1.2 Purpose of this Guide
1.3 Overview of the scope of the DMTT Law

2. Entities within the Scope

2.1 Multinational Enterprise Group
1. 2.1.1 Introduction
2. 2.1.2 Existence of a Group – accounting consolidation
2.2 Ultimate Parent Entity
2.3 Constituent Entities
1. 2.3.1 Introduction
2. 2.3.2 Permanent Establishments
3. 2.3.3 Minority Owned Constituent Entities
4. 2.3.4 Flow-through Entities
2.4 Joint Ventures and Joint Venture Subsidiaries
1. 2.4.1 Introduction
2. 2.4.2 Joint Ventures
3. 2.4.3 Joint Venture Subsidiaries
4. 2.4.4 DMTT Treatment of Joint Ventures and Joint Venture Subsidiaries
2.5 Excluded Entities
1. 2.5.1 Introduction
2. 2.5.2 Government bodies
3. 2.5.3 International Organisations
4. 2.5.4 Non-profit Organisations
5. 2.5.5 Investment Funds that are Ultimate Parent Entities
6. 2.5.6 Pension Funds and Pension Services Entities
7. 2.5.7 Real Estate Investment Vehicle that is an Ultimate Parent Entity
8. 2.5.8 Other Excluded Entities

3. The Revenue Test

3.1 Application of the Revenue Test
1. 3.1.1 Introduction
2. 3.1.2 Definition of Revenue for the purposes of the Revenue Test
3. 3.1.3 Interaction between the Revenue Test and Excluded Entities
4. 3.1.4 Fiscal Year Deviations
5. 3.1.5 How the Revenue Test applies where Consolidated Financial Statements are not available
3.2 Deemed Consolidation Test
1. 3.2.1 Introduction
2. 3.2.2 Interaction between the deemed consolidation test and the definition of a Controlling Interest
3. 3.2.3 Application of the deemed consolidation test to the Revenue Test
3.3 Consolidated Revenue Test for Group Mergers and Demergers
1. 3.3.1 Introduction
2. 3.3.2 Application of the Revenue Test to Mergers
3. 3.3.3 Application of the Revenue Test to demergers
  1. 3.3.3.1 Standalone Revenue Test
  2. 3.3.3.2 First year ending after the demerger
  3. 3.3.3.3 Second to fourth Fiscal Years following the demerger
3.4 Identification of Transition Year (first in-scope Fiscal Year)
1. 3.4.1 Introduction
2. 3.4.2 Identifying the Transition Year
3.5 Currency for the Revenue Test
1. 3.5.1 Introduction
2. 3.5.2 Currency Conversion

4. Exclusions and Safe Harbours

4.1 Introduction
4.2 De Minimis Exclusion
1. 4.2.1 Introduction
2. 4.2.2 Conditions for Exclusion
3. 4.2.3 Entities that do not qualify for the exclusion
4. 4.2.4 Post Filing ETR Adjustments
5. 4.2.5 Changes in scope of MNE Group
4.3 Transitional Country-by-Country Reporting Safe Harbour
1. 4.3.1 Introduction
2. 4.3.2 Conditions to qualify for the safe harbour
3. 4.3.3 Transition Period
4. 4.3.4 Exclusions from Transitional CbCR Safe Harbour
5. 4.3.5 Other entity types
4.4 Exclusion for the initial phase of international activity
1. 4.4.1 Introduction
2. 4.4.2 Five-year period
3. 4.4.3 Reference jurisdiction
4. 4.4.4 Applicable conditions
4.5 Simplified Computation Safe-Harbour

Contents