Corporate Tax Grouping in the UAE

Related UAE companies can apply to form a Corporate Tax group and be treated as a single taxable person. For many groups this simplifies compliance and allows profits and losses to be offset within the group. Safeway advises on whether a tax group is right for you and handles the application.

Conditions to form a tax group

• The parent holds at least 95% of the share capital, voting rights and profit entitlement of each subsidiary, directly or indirectly
• All members are resident juridical persons
• None of the members is an exempt person or a Qualifying Free Zone Person
• All members share the same financial year and prepare accounts under the same accounting standards

Benefits and trade-offs

• A single consolidated Corporate Tax return for the group
• Offset of losses of one member against profits of another
• Intra-group transactions generally eliminated on consolidation
• Joint and several liability for the group's Corporate Tax is the main trade-off to weigh

How Safeway helps

We test eligibility, model the effect of grouping versus filing separately, and prepare the application and the consolidated return.

Frequently asked questions

What ownership is needed for a UAE tax group?

The parent must hold at least 95% of the share capital, voting rights and profit entitlement of each subsidiary, directly or indirectly.

Can a free zone company join a tax group?

No. A Qualifying Free Zone Person cannot be a member of a Corporate Tax group.

What is the main downside of a tax group?

Members are jointly and severally liable for the group's Corporate Tax for the relevant periods.

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