Allows an election to include all portfolio-share dividends, including short-term holdings, rather than applying the usual exclusion.
What should you do now?Apply the election consistently to covered entities and record the start of its five-year term.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Allows an election to include all portfolio-share dividends, including short-term holdings, rather than applying the usual exclusion.
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?
A five-year election for the relevant entity includes all dividends from Portfolio Shareholdings, whether short-term or not, instead of the dividend exclusion that would otherwise apply. It does not permit annual selection of individual dividends. Insurance companies must also consider the restriction on deducting reserve movements related to excluded dividends on securities held for policyholders. Reconcile the election to the holdings, distributions and related taxes.
Financial reporting, tax, transfer-pricing and consolidation teams.
Apply the election consistently to covered entities and record the start of its five-year term.
Selecting individual dividends or confusing this election with the equity investment election in Article 21.
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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.