GTL Summary:

Article 6 mandates that taxpayers determine their taxable income using accrual accounting principles in accordance with international accounting standards. This ensures that income and expenses are recognised when they are earned or incurred, rather than when cash is exchanged. The law requires adherence to these commercial standards while also considering specific provisions of the Income Tax Law and its Regulations. Taxpayers are strictly prohibited from using alternative accounting methods, such as cash-basis accounting, unless they have received explicit authorization from the General Tax Authority.