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May 15, 2026

This rule outlines the accounting and documentation requirements for foreign incorporated bodies that sell all or part of their company shares. The selling entity is obligated to present a sale contract authenticated by the Ministry of Justice, an amended memorandum of association, and proof of asset collection. The acquirer must, upon request from the tax department, provide financial records for the transaction year, including balance sheets and closing accounts. The rule stipulates that special and exceptional cases will be treated separately following consultation with the Tax Department.

Executive Rule No. 50 Concerning accounting of foreign Incorporated Bodies which wholly or partially sell its share of the company

First: foreign Incorporated Bodies which wholly or partially sell its share of the company shall abide by the following:

Presenting sale or assignment contract for part of its share authenticated by Ministry of Justice.
Amended memorandum of association.
Documents supporting collection of sold assets (or stating this in balance sheet and closing accounts of the company).

Second: the acquirer shall present balance sheet, closing accounts, books, records and necessary documents for the financial year related to sale transaction if tax department requested that.

Third: special and exceptional cases related to accounting of foreign incorporated bodies which wholly or partially sells its share of the company will be treaded separately after consulting the Tax Department in this regard.