This ruling is issued pursuant to the authority granted under section 84 of the Tax Administration Act (Law Number 3/2010) as amended by Law Number 14/2011. All legislative references are to the Business Profit Tax Regulation (Regulation Number 2011/R-35) as amended by Regulation Number 2011/R-47 unless otherwise stated. This ruling is legally binding.

Introduction

1. This ruling applies in respect of section 8(c).

2. Section 8 states:

“…

(c) Accounts required to be prepared under Section 4 of the Regulation shall be prepared in accordance with IFRS or any other international accounting standards acceptable to the MIRA, using the accrual basis of financial accounting.”
(emphasis added)

3. This ruling explains the term “any other international accounting standards acceptable to the MIRA” in section 8(c).

Ruling

4. For the purpose of section 8(c), international accounting standards (other than International Financial Reporting Standards) acceptable to the MIRA are:

(a) International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs); and

(b) Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Standards.

5. The Commissioner General of Taxation may, at his discretion, amend the list of acceptable international accounting standards in paragraph ‎4 of this ruling by publishing such amendments on the official website of the MIRA.

6. Taxpayers may request in writing to the Commissioner General of Taxation to amend the list of international accounting standards acceptable to the MIRA.

7. Taxpayers may use international accounting standards other than IFRS in a tax year only if the relevant standard was approved on or before the date of filing their business profit tax return for that year.

8. The list of acceptable accounting standards shall be published on the official website of the MIRA.

Date of Effect

9. This ruling shall take effect from its date of issue.