GTL Summary:

Article 81 of the KSA Income Tax Law establishes key transitional rules. For assets acquired before the law's effectiveness, their value for group purposes is determined by their original cost less any depreciation previously granted to the taxpayer. This sets the opening value for subsequent depreciation. The Article explicitly prohibits the carry-forward of operational losses incurred before the entry into force of Council of Ministers' Resolution No. (3) of 5/1/1421H. Additionally, any operational losses that a taxpayer incurs during a tax exemption period are also disallowed from being carried forward to future taxable years.

Document Type: Tax Law Article
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Article Number: 81
Country: 🇸🇦 KSA
Location: Chapter 16 - Concluding Provisions
Order: 81
Last updated at: 2025-12-19 09:23:03 UTC

Chapter 16 - Concluding Provisions

Article 81 - Transitional Provisions

In case of acquiring an asset in a taxable year prior to the effectiveness of this Law, the value to be added to the appropriate group shall be the cost of the asset minus any depreciation deduction previously granted to the taxpayer.
Operational losses incurred before the entry into force of Council of Ministers' Resolution No. (3) dated 5/1/1421H may not be carried forward.
Operational losses incurred by the taxpayer during a tax exemption period may not be carried forward.

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