Corporate Tax
Tax Grouping

Conditions to form a Corporate Tax Group in the UAE

Tax Gian’s corporate tax grouping services in the UAE help you determine if you can apply for the ‘single taxable person’ treatment. A UAE resident parent company and its subsidiaries can form a corporate tax group if they meet the following conditions:

• The parent entity and its subsidiaries need to be juridical persons and not individuals
• The parent company and its subsidiaries must be UAE Resident Persons
• The parent entity must own at least 95% share capital, voting rights and profits & net assets of each Subsidiary, either directly or indirectly
• Neither the Parent Company nor the Subsidiaries are an Exempt Person
• Neither the Parent Company nor the Subsidiaries are a Qualifying Free Zone Person
• The Parent Company and each Subsidiary must have the same Financial Year
• The Parent entity and each Subsidiary must prepare their Financial Statements using the same Accounting Standards

Benefits of Corporate Tax Group Creation in the UAE

Our corporate tax advisers in Dubai can advice you on the benefits of tax group setup:

• Reduced compliance burden due to single tax return filing
• Ability to reduce costs due to the single tax return filing option
• Ability to offset tax losses of one or more member entities with taxable profits of one or more member entities
• Tax groups need not come under transfer pricing regulations

Disadvantages of Corporate Tax Group Formation

Tax Gian’s experienced corporate tax consultants in Dubai can warn you about the demerits of corporate tax formation:

• Triggers joint as well as several liabilities
• The AED 375,000 threshold applies collectively to the group rather than to each member separately.
• Joining or exiting the group will make the M&A activities complex
• Once established, a corporate tax group can be disbanded under certain circumstances only

How Tax Gian can Help with Corporate Tax Grouping

We are the leaders in providing the best corporate tax grouping services in the UAE. Our specialities in this regard include:

• Assessment to determine the eligibility for group formation
• Advice on whether the grouping is beneficial or disadvantageous to the entities
• Help to register with the FTA as a corporate tax group
• Provides corporate tax planning for the group
• Support with documentation and records
• Assistance in filing the corporate tax group’s tax returns in the UAE
• Corporate tax group deregistration support in the UAE

Why Hire Tax Gian’s Corporate Tax Grouping Services in UAE?

• We are registered tax agents in the UAE
• We provide customized corporate tax services in the UAE
• Tax Gian follows a customer-first approach
• We have a dedicated team of tax consultants and chartered accountants
• We can audit your financial statements if required

Frequently Asked Questions (FAQs)

1. Are Tax groups eligible for Small Business relief?

As a Tax Group will be treated as a single Taxable Person, Small Business Relief applies to the Tax Group rather than to the individual members of the Tax Group.

2. Will the Tax Group get a Tax Registration Number?

Once the application for forming a Tax Group is approved by the FTA, that Tax Group will be issued a separate Tax Registration Number (TRN).