Works in progress are costs of works whose execution has not been completed by the Incorporated Body and were included in the tax declaration but no revenue was recognized against them during the period as they shall be carried forward to the subsequent year. This applies to the contracts that commenced at the end of the year accounted for or cost of ongoing contracts whose revenues have not been recognized. These costs are treated by examination and making sure of their existence and then to be carried forward to the subsequent year.

First: The Incorporated Body shall be entitled to carry forward costs of works whose execution has not been completed by the Incorporated Body at the end of financial year to the next year for ongoing contracts whose revenues can not be reliably measured or for which revenues are estimated provided that such revenue should not be less than the cost incurred for such works.

Second: Special and exceptional cases relating to works in progress shall be separately treated after consulting the Tax Department in this regard.