What is a tax group under UAE corporate tax?

A tax group lets two or more UAE resident companies that meet the conditions be treated as a single taxable person for corporate tax purposes, filing one consolidated corporate tax return instead of separate returns. To form a tax group, a parent company and its subsidiaries generally must meet ownership and control requirements (typically the parent holding a high minimum percentage of the subsidiary's share capital, voting rights, and profit entitlement), share the same financial year and accounting standards, and none of the members can be an exempt person or a Qualifying Free Zone Person. Within a tax group, intra-group transactions are generally eliminated on consolidation, and the group applies the rate schedule (0% up to AED 375,000 and 9% above) to its combined taxable income, with the threshold applied once for the group. Grouping can simplify compliance and allow profits and losses of members to be offset, but it also makes members jointly liable for the group's corporate tax. Because the conditions are precise, confirm eligibility with the Federal Tax Authority or a qualified UAE tax adviser. You can compare verified UAE legal professionals on LEXAI.