Governs deferred-tax adjustment, remeasurement at the minimum rate, exclusions, five-year recapture and special cases.
What should you do now?Maintain a temporary-difference register tracking the item, year, reversal and potential recapture.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Governs deferred-tax adjustment, remeasurement at the minimum rate, exclusions, five-year recapture and special cases.
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?
Adjust deferred tax under the Regulations and recast expense at the Minimum Rate where the accounting rate is higher. Exclusions include specified amounts relating to excluded income, uncertain positions, recognition or valuation changes and tax credits. A liability included but unpaid after five years may require recapture and recomputation of the original year unless a Paragraph J exception applies. Track origin year, payment and exception for each difference; the five-year rule does not indiscriminately remove all deferred tax.
Financial reporting, tax, transfer-pricing and consolidation teams.
Maintain a temporary-difference register tracking the item, year, reversal and potential recapture.
Copying deferred-tax balances without recasting or tracking recapture and exceptions.
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.