What criteria must be met to be eligible for tax group registration?

The following conditions must be met for the NBR to approve a registration from a tax group:

• All members of the tax group must be a part of an economic activity.

• All members of the tax group must be residents of Bahrain.

• All members of the tax group must be registered under VAT for tax purposes.

• All members of the tax group must be related, where the term related can be defined as any of the following conditions:

• Two or more members of a tax group must be in a formal partnership that meets at least one of the following:

  1. When added together, members have a voting interest of at least 50%.

  2. When added together, members have a market value interest of at least 50%.

  3. Members have control in some other form. (It should be noted that common ownership does not always mean that the owner is a member of he tax group.)

The members of the tax group must provide evidence that they have met all the requirements mentioned above. If they are unsure about whether or not they have met these conditions, but feel that they have enough reason to be considered as a group, they can still apply for tax group registration and be evaluated by the NBR.