Defines the transition year as the first fiscal year beginning on or after 1 January 2025, from which obligations arise subject to anti-avoidance rules.
What should you do now?Identify the first fiscal-year start on or after 1 January 2025; do not confuse it with year-end or filing date.
What does the official Article provide?
The official source is Arabic. This English commentary is explanatory and is not presented as an official translation.
Defines the transition year as the first fiscal year beginning on or after 1 January 2025, from which obligations arise subject to anti-avoidance rules.
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?
The commencement Transition Year is the first Fiscal Year beginning on or after the Law's effective date, not necessarily the calendar year containing that date. Obligations arise from that year's beginning, subject to anti-abuse provisions. Use the group's actual Fiscal-Year start for first returns, advances and opening balances, and distinguish this commencement rule from a later-entering group's Transition Year.
Groups entering the regime from 2025 and reporting, deferred-tax and acquisition teams.
Identify the first fiscal-year start on or after 1 January 2025; do not confuse it with year-end or filing date.
How can the rule appear in practice?
For a group with a 1 July year start, the commencement transition year begins 1 July 2025, not the period that began in July 2024.
This illustration is not an NBR case or a binding outcome for a particular fact pattern.Starting computation midway through an existing Fiscal Year solely because the Law becomes effective.
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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.
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.