About MOO
We are Issa bin Salman Al Khalifa, Emir of Bahrain
After reading the Constitution.
Princely Order No. 4 of 1975.
Decree No. 80 of 1955 on bahrain's income tax amended by Decree No. 1 financial lye for 1966 and Law No. 1 of 1977.
At the suggestion of the Minister of Development and Industry,
After cabinet approval,
We draw the following law:
Article 1
As of January 1, 1979, the accompanying law on theincome tax is an alternative to the 1955 Bahrain Income Tax Tax No. 80 and its amendments.
The provisions of Decree No. 80 of 1955 and its aforementioned amendments continue to be implemented in relation to any taxable year expired on or before December 31, 1978.
Article 2
Taking into account the provisions of Decree No. 80 of 1955 and its amendments and the provisions of the accompanying law, the period starting from the first day of the annual accounting period set by each tax payer for the holding of his books and records and ending on December 31, 1978 is a full tax year for him, and the period starting from January 1, 1979 and ending on the last day of the annual accounting period is another full tax year for the taxpayer.
Article 3
The Minister of Development and Industry must implement this accompanying law and act on it from the date it is published in the Official Gazette.
Prince of Bahrain
Isa bin Salman Al Khalifa
Issued at The Rifaa Palace
On 8 Th. 1400 H
November 28, 1979
Income tax law
Definitions
Article -1 -
In applying the provisions of this Law, the following words and phrases have the corresponding interpretation:
(a) The term "taxpayer" means any legal body, institution or company subject to income tax imposed under the provisions of this Act.
(b) The word "minister" means the Minister of Finance and national economy or any other minister entrusted with overseeing thestate income tax in addition to his work.
C. The word "fees" does not include fees due for personal imports for the taxpayer's employees or in relation to the work of the taxpayer if those imports are subsequently sold in Bahrain.
D- The word"income"means the totalincome earned by the taxpayer each tax year from sales of crude oil or other natural hydrocarbons extracted from the land in Bahrain or complete or incomplete products manufactured in Bahrain from crude oil or other natural hydrocarbons and what meets It is a financial compensation for refining operations in Bahrain, and from the amounts it receives because of an interest in crude oil or other natural hydrocarbons extracted from the land in Bahrain or from its revenues, from which the discounts established in accordance with the provisions of article (4) of this Law are deducted.
E. "Property" means tangible or intangible assets that are restricted to the expense of capital.
The term "from land in Bahrain" includes the lower layers of land within the boundaries of the territory of the State of Bahrain, including the seabed.
G. The word "sell" includes swapors or swaps and the word "sold" includes what is exchanged or bartered.
The term "exploratory well" means:
1. Any well drilled mainly for the purpose of discovering a reservoir of crude oil or other natural hydrocarbons in an area where oil has not been discovered before.
Or
The refore, the united States is the only country in the world that has been able to achieve the millennium development millennium.
The term "intangible costs per exploratory well" means all the costs of drilling this well, including the costs of production and packaging tubes down the edge of the packaging pipe head.
J. The term "crude oil" includes condensation output from gas extracted at the head of the packaging pipe.
Article– 2 –
A 46% income tax (46%) is levied on theincome earned in each tax year by any legal body, institution or company wherever it is established and directly engaged in the exploration or production of crude oil or other natural hydrocarbons from the ground in Bahrain on its own account, or refining crude oil owned or owned by others in its own facilities in Bahrain regardless of where this crude oil is extracted.
Article– 3 –
The government's decision to re-establish a new government is a matter of concern.
Article– 4 –
When calculating theincome,the vocabulary provided in the following paragraphs is allowed to be deducted wherever it occurs:
(a) Reasonable costs to be spent by the taxpayer on crude oil or other natural hydrocarbons extracted from the ground in Bahrain, and on finished or incomplete products manufactured in Bahrain from crude oil or other natural hydrocarbons sold in the tax year, whether or not produced, extracted or manufactured prior to the tax year.
(b) Reasonable expenses paid or incurred by the taxpayer - excluding amounts mentioned in article (3), amounts considered capital expenditures, and amounts covered by the costs referred to in paragraph (a) prior - in the tax year for a trade or business that it engages in and entails income tax under the provisions of this Act, without limiting This is generally the case, including management expenses, overheads, foundation expenses, interest, returns, rents, contributions, wages and rewards for services performed by third parties, whether they are entitled to or paid directly to persons providing such services or to other persons in connection with insurance, retirement or other projects designed for the benefit of the persons providing the services.
The costs of exploration, drilling and development in relation to oil or other hydrocarbons in Bahrain, which are not deducted by the taxpayer in accordance with the provisions of this paragraph or paragraph (a) of this article, are capital expenditures applicable under the following paragraph (c) provisions, provided that the taxpayer collects all the intangible costs spent on each exploratory well in tax years from december 31, 1964 and then calculates the incomeof the taxpayer either. Whether that well is abandoned or not deducted by an amount equivalent to 20% of these expenses for each of those years until 100% of those costs are deducted or even the tax year in which the exploration is negated, and this year the remaining balance is deducted from the costs, taking into account that in any case the deduction shall not exceed 100% (100%) of any of those costs.
(c) Reasonable amounts for expropriation, age, depreciation and exhaustion during the tax year that affects property used by the taxpayer in a trade or business that entails income tax under the provisions of this Act, provided that these amounts are equal for each tax year estimated for each tax year estimated for the remaining estimated years of the life of such a property, or otherly approved by the Minister and the taxpayer, provided that these amounts do not exceed the total value of such property in accordance with the definition referred to in Article 5 of this Act.
However, at the time of the taxpayer's choice and otherwise provided in paragraph (b) the amounts deducted for property used in the production and extraction of crude oil and other natural hydrocarbons from the land in Bahrain may be amounts that each tax year represent that percentage of the value of the property according to its definition in article 5 of this Act is equivalent to the ratio of the crude oil produced and extracted from the land in Bahrain in the tax year to the total amount of oil. Estimated crude that is likely to be produced or extracted by the taxpayer from the land in Bahrain from the beginning of the tax year.
In the implementation of the provision of this paragraph, expenditures that are by nature capitaland act in order to achieve any interest in crude oil or other natural hydrocarbons from the land in Bahrain shall be recovered as mentioned above and no amounts may be deducted in accordance with the provisions of this paragraph if they are included in the costs referred to in paragraph (a) of this article.
D- Losses resulting in the tax year from conducting a trade or business resulting in income tax under the provisions of this Law, which are not compensated by insurance or otherwise, and include, without specifying the generality of the above, the bad debts and losses resulting from claims for damages from the taxpayer and losses resulting from damage, loss or loss of equipment or equipment necessary for work or any property used in this trade or business, to be calculated in an appropriate manner.
E. An amount equivalent to the increase in the amount of the amounts allowed to be deducted in accordance with the provisions of this article for any previous tax year, for the totalincome referred to in paragraph (e) of article 1 of this Act in that year, less any amounts deducted in accordance with the provisions of this paragraph for any Another prior tax year provided that the discount allowed in accordance with the provisions of this paragraph for any tax year exceeds the amount of totalincome in that year on the discounts allowed in accordance with the provisions of this article, except for any deduction that may be made in accordance with the provisions of this paragraph for that year.
Article– 5 –
The value of the property on the basis of which the amount of deduction for loss, foot, depreciation and exhaustion is determined in accordance with the provisions of paragraph (c) of the previous article (4) and the amount of deduction for loss of property in accordance with the provisions of paragraph (d) of the same article above, is the original cost of the property plus all expenses restricted to the expense of capital minus the total value of losses due to extinction, foot, consumption or exhaustion permitted for property as stipulated in this Act.
If an amount is determined to be deducted for any tax year due to the exorcism, foot, consumption or exhaustion of any property, the amount must be the same amount previously deducted for that tax year in accordance with the provisions of this article.
For property that is in the taxpayer's possession prior to the first tax year during which he was subjectto theincome tax imposed under the provisions of this Act, the settlement is previously deducted from the exorcism, foot, depreciation and exhaustion and is calculated for the purposes of this article.
As if this law were fully in force and applicable during the period during which the possession of such property took place.
Article– 6 –
The tax year for whichincome tax is levied is determined by the annual accounting period set by the taxpayer for the holding of his books and records. The taxpayer must hold his books and records on the basis of the solar year calculated in the Gregorian calendar unless the Minister agrees that the taxpayer holds his books and records on an alternative basis for that solar year.
Article– 7 –
Theincome is calculated as stipulated in this law and according to the commercial accounting method normally used by the taxpayer and in an orderly manner to hold his books and records.
If this method used does not fairly reflect the taxpayer's income, the calculation must be conducted in accordance with the method that gives a fair picture of theincome. The method of collecting the benefit (i.e. the method by which the amounts entered and the deduction amounts are taken into account in the tax year in which it occurred or in other words the year in which rights or liabilities are established and for which the amount can be appropriately set) is a means of giving a fair picture of theincome and the taxpayer is entitled to use his own method of keeping his books and records to convert the currency to another currency if such a method is generally recognized in commercial accounting.
The terms "due or paid", "paid or entailed", "achievable" and "entailed" when used in this Law will be applied and due to them in accordance with the commercial accounting method on which theincomeis calculated.
If theincome is calculated according to the method of receivables in commercial accounting, all revenue data is taken into account for the tax year in which the taxpayer is due and all deduction data is deducted for the tax year in which the taxpayer is charged.
If theincome is calculated under the method of receipts and payments in commercial accounting, all revenue data are taken into account for the tax year in which it is received and all deduction data is deducted for the tax year paid by the taxpayer.
Article– 8 –
The taxpayer must submit to the Minister an acknowledgement of the discretionaryincome tax and submit the above-mentioned declaration to the minister's designated entity for this purpose no later than the 15th day of the third month of the tax year in question.
The amount ofincome tax shown in each of the estimatedincome tax returns must be paid on 12 equal monthly instalments from the 15th day of the month following the date of filing, provided that the taxpayer on the 15th, 6th, 6th, 6th and 12th of these 12 months deposits a revised income tax rate for that year, unless a final income tax is deposited for that year.
The amount ofincome tax shown in the amended discretionary or final declaration, minus the amount ofincome tax already paid for the same tax year, is distributed equally over the remaining 12 monthly installments, including the one whose performance is due in the month in which the amended or final statement is deposited.
If the amount of tax shown in the final declaration ofincome tax is less than the amount previously paid in accordance with the estimatedincome tax declaration for the same tax year, the excess amount is allocated to calculate the first payment for any income tax payments due from the taxpayer later provided that any amount not allocated as mentioned above to the calculation of income tax payments due from the taxpayer no later than the end of the two months following the filing of the finalincome tax declaration must be returned immediately to the taxpayer.
If the final declaration ofincome tax is deposited after all 12 installments of the estimatedincome tax and the amount ofincome tax shown in the final declaration is higher than the amount previously paid for the same tax year, the unpaid amount ofincome tax must be performed when depositing the finalincome tax statement.
The Minister may grant a reasonable extension for filing declarations and the performanceof income tax levied under the provisions of this Act to appropriate limits when the taxpayer submits what convinces the Minister of the necessity of such an extension.
In the event of default ing on the deposit of the declaration or the performance of the amount ofincome tax due as stipulated in this article, a fine of 1% (1%) is added to the amounts due. of them for every thirty days or part of them throughout the period of underdevelopment, unless this underdevelopment is due to a reasonable reason in the minister's view.
Article– 9 –
The taxpayer must record in his books and accounts all revenue and debit data and all other data that affect the amount ofincome tax incurred for the tax year.
He must deposit his approval in the form of valid restrictions that fairly reflect his income.
If an internationally recognized accounting institution accredited by the Minister for the Tax Year believes that the tax restrictions are correct and fairly reflect the income of the taxpayer calculated as provided for in this Act, and that the declaration is consistent with these restrictions, the declaration, if the Minister does not prove the contrary, accepts that it is true and that theincome tax described in such a declaration is considered to be a final amount.
The Minister is expected to issue a list of two or more internationally recognized accounting institutions adopted for that year by the Minister.
In the event that the declaration is not ratified in accordance with the provisions of this article, the Minister may provisionally accept the taxpayer's declaration as a valid declaration or may decide to appeal the declaration. The amount ofincome tax shown in the declaration should be adjusted.
Article – 10 –
The Minister shall apply and implement the provisions of this law and must carry out the procedures for collecting thetaxes of the income due and performing them immediately for the state treasury.
When requested, the Minister must give a receipt for the amount ofincome taxes paid by the taxpayer and the year or years for which the taxes have been paid.
At the request of the Minister, the taxpayer must allow the Minister and the competent authority authorized to access his books and records at a time when the Minister considers this to be in accordance with the provisions of this Act.
Article – 11 –
The taxpayer's statements are confidential, and no one, except the minister and the competent authority authorizing it, may access or examine them without the consent of the taxpayer, and they may not, without such consent, disclose to anyone else or inform anyone else of the amount or details of any revenue or deduction data or other data received or disclose in the taxpayer's statements, books or records, nor may they allow anyone else to access or examine any statement, copy, record or book. Contains an extract from this data.
Article – 12 –
Any person who is aware of it visits the taxpayer's records or presents false facts affecting any declaration or certificate required for the purposes of this Law is deemed to have committed a violation of its provisions. When convicted, he shall be punished under section 271 of the Penal Code of 1976.
If the taxpayer or any person whose actions is legally responsible for his actions falsifies the taxpayer's books as indicated in the previous paragraph of this article or gives a false statement that has an impact on the required declaration or ratification, the taxpayer is also deemed to be contrary to the provisions of this law and shall be punished when convicted with a fine of not more than 500 dinars.
Article – 13 –
Bahrain's courts are solely competent to adjudicate any dispute or dispute between the government and the taxpayer concerning the application and implementation of the provisions of this law or the amount ofincome tax due under its provisions.
