Article 42 - Effective Tax Rate Computation

Except as otherwise provided in the Law or these Regulations, for the purposes of computing the Effective Tax Rate in Paragraph A of Article 8 of the Law, Adjusted Covered Taxes for Constituent Entities located in the Kingdom means the sum of the Adjusted Covered Taxes of all the Constituent Entities for a Fiscal Year as determined in accordance with Article 7 of the Law.

Except as otherwise provided in the Law and these Regulations, for the purposes of the computation of the Effective Tax Rate in Paragraph C of Article 8 of the Law, the Adjusted Covered Taxes and Constituent Entity Income or Loss of Constituent Entities that are Insurance Investment Entities shall be excluded from the computation of the Effective Tax Rate.

For the purposes of Paragraph A of Article 8 of the Law, the result of the computation of the Effective Tax Rate is expressed as a percentage rounded to the fourth decimal place. The Effective Tax Rate shall be computed for each Fiscal Year.