Article 20 - Adjustments in Respect of Dividends from Portfolio Shareholdings

A Filing Constituent Entity may make an election in respect of each of the Constituent Entities located in the Kingdom which are members of the same Multinational Enterprise Group, to include all dividends received by the Constituent Entity with respect to Portfolio Shareholdings, regardless of whether these are Short-term Portfolio Shareholdings, in their Constituent Entity Income or Loss computation, notwithstanding the adjustment for Excluded Dividends that would apply in the absence of this election.

Where the election under Paragraph A of this Article is made, any expense in relation to movements in insurance reserves related to Excluded Dividends from securities held on behalf of policyholders shall not be deducted in computing Constituent Entity Income or Loss.

The election referred to in Paragraph A of this Article is a Five-Year Election which can be made in accordance with Article 20 of the Law.