Adds the detailed Pillar Two vocabulary used throughout the Regulations, including transition year, parent and investment entities, deferred tax and safe harbours.
What should you do now?Create an internal glossary mapping every entity and amount to the correct legal term before computing tax.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Adds the detailed Pillar Two vocabulary used throughout the Regulations, including transition year, parent and investment entities, deferred tax and safe harbours.
This is a verified summary rather than a verbatim reproduction. Consult the official Arabic text, the Law and later decisions before making a final determination.
What does the Article mean in plain language?
Read these definitions together with those in the Law. Some identify entities; others classify income, taxes or multi-year elections. An accounting label may therefore differ from the legal classification. Identify the term, establish its definition and then apply the operative Article. For example, recognising deferred tax in the accounts does not by itself establish eligibility for Adjusted Covered Taxes; the relevant adjustment rules must also be applied.
Tax, accounting and legal teams beginning a scope review or computation file.
Create an internal glossary mapping every entity and amount to the correct legal term before computing tax.
Using an accounting or everyday label without testing the statutory definition.
Related Articles
Before relying on the result
Is this Article enough on its own?
Usually not. Read it with the connected Law Article, definitions, any effective election and current NBR guidance, especially for an amount or deadline.
Does NBR guidance replace the Regulations?
No. Guidance explains application and supports procedures and examples, but current legislation and decisions prevail in case of inconsistency.
Official sources
Complete official Arabic text — 93 Articles across 97 pages.
The primary legislation detailed by this Article.
The official guide most closely connected to this Article and its procedures.