Coordinates deferred tax with stock-compensation and realisation elections and carrying-value differences for assets and liabilities.
What should you do now?Reconcile tax basis, carrying value and elected treatment for each asset or liability.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Coordinates deferred tax with stock-compensation and realisation elections and carrying-value differences for assets and liabilities.
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?
Where the income-computation carrying value differs from the accounting value, deferred tax follows the basis prescribed by the Regulations. The Article covers stock compensation, fair-value elections, transfer pricing, acquisitions and asset transfers. Do not use a deferred-tax amount based on an old accounting basis after the income calculation has adopted another required basis. Reconcile asset and liability values between the income and deferred-tax schedules and document each difference.
Financial reporting, tax, transfer-pricing and consolidation teams.
Reconcile tax basis, carrying value and elected treatment for each asset or liability.
Changing the income basis while leaving deferred tax on an inconsistent basis.
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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.