Understanding Tax Group Under UAE Corporate Tax Law: A Simple Guide

What is a Tax Group?

A Tax Group allows two or more UAE resident companies to be treated as a single entity for Corporate Tax purposes, simplifying tax calculations and filings.

Key Conditions:

Parent company holds at least 95% of the subsidiary’s shares, voting rights, and profits.

All members are UAE residents for tax purposes.

None of the members are exempt or considered Qualifying Free Zone Persons (QFZPs).

Benefits:

Losses and profits can be offset within the group.

Single tax return filing for the entire group.

Easier cash flow and tax liability management.