Can a group of UAE companies form a Tax Group for tax purposes?
Yes, UAE resident companies can form a Tax Group and be treated as one entity for tax purposes if the UAE parent company owns at least 95% of the shares and voting rights of each company. All companies in the group must meet certain conditions and use the same financial year and accounting standards.
Example: Company X owns, 20% of company Y, and 100% of Company Z. Company Z owns 80% of the shares of Company Y. Because Company X indirectly owns 100% of the shares of Company Y (80% via Company Z), it can form a Tax Group with both Company Y and Company Z.
CONTACT US FOR TAX CONSULTANCY
Master UAE Corporate Tax: Explore our course!
Related Content for UAE Corporate Tax
Are Free Zone companies in UAE liable to Corporate Tax ?
Free Zone has distinct taxation system based on Qualifying Income and Excluded Income. It is therefore essential to know the kind of income taxable under UAE Corporate Tax Law for Free Zone companies.
Can you Split up your Business to claim Small Business Relief in the UAE?
If your business exceeds the Revenue Threshold limit for Small Business Relief, can you split up your business to claim Small Business Relief as per UAE Corporate Tax Law or will it constitute a Tax Crime punishable under the UAE Tax Procedures Law?
Who is a Taxable Person under UAE Corporate Tax Laws?
Are you a Taxable Person liable for Corporate Tax under the UAE Corporate Tax Law? Can an Exempt Person be considered as a Taxable Person?