Excludes specified amounts from covered taxes, including qualified IIR, domestic top-up tax, certain allocation taxes and policyholder amounts.
What should you do now?Classify each tax by legal nature rather than ledger label or payee.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Excludes specified amounts from covered taxes, including qualified IIR, domestic top-up tax, certain allocation taxes and policyholder amounts.
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?
Not every accounting tax amount is a Covered Tax. Exclusions include IIR and UTPR taxes, qualified domestic minimum top-up taxes, tax under this Law and insurer taxes on policyholder returns. The property-gain election also affects related taxes. Remove excluded amounts before allocation and adjustment; otherwise the effective rate may be inflated by including the top-up tax itself in its numerator.
Financial reporting, tax, transfer-pricing and consolidation teams.
Classify each tax by legal nature rather than ledger label or payee.
Using total tax expense without exclusions or including DMTT itself.
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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.