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Article 19 defines the 'Consolidated Financial Statements' required for determining tax liability under the Bahrain DMTT framework. These statements must be prepared according to Acceptable Financial Accounting Standards, presenting the group as a single economic unit. If an Ultimate Parent Entity does not prepare such statements, Article 19 requires the use of statements that would have been prepared under an Authorised Financial Accounting Standard, adjusted to prevent material competitive distortions. The Regulations will define 'material competitive distortion' and ensure all financial reporting remains consistent with OECD Pillar Two Model Rules, providing a reliable basis for calculating the 15% top-up tax.
Chapter 4 - Tax Procedures and Obligations
Article 19 - Financial Statements
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