Governs transition-year deferred tax assets and liabilities at the lower of the minimum rate and recorded rate, with exclusions and remeasurement.
What should you do now?Retain the prior-year-end deferred-tax schedule, measurement rate and type of each difference.
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 transition-year deferred tax assets and liabilities at the lower of the minimum rate and recorded rate, with exclusions and remeasurement.
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?
At transition, examine opening deferred-tax assets and liabilities at the lower of the Minimum Rate and the recorded rate, recasting where required. A loss asset may be recomputed at the Minimum Rate where evidence shows the original loss would have been a Constituent Entity Loss had the group been in scope. Disregard the specified valuation and recognition adjustments. Document each opening balance's origin, year, rate and loss character rather than copying it from the accounts.
Groups entering the regime from 2025 and reporting, deferred-tax and acquisition teams.
Retain the prior-year-end deferred-tax schedule, measurement rate and type of each difference.
Recasting every deferred-tax asset to 15% without establishing the qualifying loss.
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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.