ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION PJSC Notes to the interim condensed consolidated financial statements for the nine-month period ended 30 September 2024 (continued) 3. Material accounting policies (continued) 3.3 Basis of Consolidation (continued) Details of the Company’s significant subsidiaries and effective ownership interest are given below: Name of Subsidiary Ownership interest Country of Principal activities incorporation 2024 2023 Commercial agencies, commercial ADNOC Distribution 100% 100% U.A.E. enterprises, retail and distribution, Global Company LLC investment, institution and management Performing marketing activities and Total Energies Marketing distribution of petroleum products, Egypt LLC 50% 50% Egypt motor oils, fuels and specialties. Constructing, owning, and operating catering and cafeterias through service stations. The Group owns 50% interest in Total Energies Marketing Egypt LLC through its indirect subsidiary ADNOC Distribution Egypt Holding RSC Limited, a wholly-owned entity of ADGC LLC. 3.4 Income tax Current tax and deferred tax are recognised as income or expense in the profit or loss for the year, except in cases in which the tax results from a process or an event that is recognised at the same time or in a different year outside the profit or loss, whether in other comprehensive income or in equity directly or business combination. Current income tax The current tax for the current year and prior years and that have not been paid are recognised as a liability, but if the taxes that have already been paid in the current year or prior years are excess of the value payable for these years, this increase is recognised as an asset. The taxable current liabilities (assets) for the current year and prior years are measured at expected value paid to (recovered from) the tax authority, using the current tax rates (and tax laws) or in the process to be issued by the end of the financial year. Tax assets and liabilities are set-off only when certain conditions are met. Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: • The initial recognition of goodwill. • The initial recognition of assets or liabilities in a transaction that: o Is not a business combination. o Does not affect neither accounting nor taxable profit (or loss). • Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future. • Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the Group’s future business plans. Deferred tax assets are reassessed at each reporting date, and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used. 13