Reconstructs the revenue test for group mergers, acquisitions of standalone entities and demergers while preventing duplication of pre-merger transactions.
What should you do now?Rebuild four-year revenue data for each group component before and after the transaction using consistent currency and periods.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Reconstructs the revenue test for group mergers, acquisitions of standalone entities and demergers while preventing duplication of pre-merger transactions.
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?
Mergers and demergers can alter the revenue test. For merging groups, aggregate relevant earlier-year revenue under the Article, addressing inter-group transactions and non-aligned periods. A merger involving an entity without consolidated statements has a separate rule. A demerged group applies the first-year and second-to-fourth-year tests in Paragraph E. A legal reorganisation does not simply reset group history. Map entities before and after the transaction to each relevant testing year.
M&A, restructuring, legal, tax and consolidation teams.
Rebuild four-year revenue data for each group component before and after the transaction using consistent currency and periods.
Assuming a newly named group is outside scope because it lacks four years under that name.
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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.