Are there any limits on how much you can use pre-Grouping Tax Losses to reduce Taxable Income in a Tax Group?
Yes, there are limits. You can use pre-Grouping Tax Losses to offset Taxable Income, but only up to the lower of two amounts: the amount of Taxable Income specifically related to the member with the pre-Grouping Tax Losses or 75% of the Taxable Income of the whole Tax Group, whichever is less.
For example, if a Tax Group has a total Taxable Income of AED 100,000, and one member has pre-Grouping Tax Losses of AED 40,000, you can offset up to AED 40,000.
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