Determines treatment in the acquisition or disposal year, including income, assets, deferred tax and the period of group membership.
What should you do now?Establish the control date, amounts consolidated and a separate close for the membership period.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Determines treatment in the acquisition or disposal year, including income, assets, deferred tax and the period of group membership.
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?
In a joining or leaving year, include the target's result and taxes included in the UPE's consolidated statements for the relevant period. Use adjusted historical asset and liability values rather than automatically stepping up to acquisition price. Apply acquisition-year payroll and tangible-asset rules, including membership-period adjustments. Track deferred taxes transferred between groups. Where a controlling-interest sale is taxed locally as an asset sale on the Paragraph I basis, apply Article 39 instead.
M&A, restructuring, legal, tax and consolidation teams.
Establish the control date, amounts consolidated and a separate close for the membership period.
Counting a full year in both groups or using purchase price as a new basis without the exception.
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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.