Tax Grouping in UAE
Fast & Compliant with HAS Global Tax Consultants
Tax Grouping
Simplify Compliance, Maximize Savings
HAS Global Tax Consultants offers expert tax grouping services in Dubai and across the UAE, helping business groups simplify corporate tax compliance and maximize tax efficiency.
What is Corporate Tax Grouping?
Corporate tax grouping allows a UAE parent company and its resident subsidiaries to be treated as a single taxable entity. This means the group files one consolidated tax return, reducing paperwork and streamlining compliance.
Who Can Form a Tax Group?
To qualify for tax grouping in the UAE:
The parent company and subsidiaries must be UAE resident juridical persons.
The parent must own at least 95% of the share capital, voting rights, and profits of each subsidiary, directly or indirectly.
All members must have the same financial year and follow the same accounting standards.
None of the companies can be exempt persons or Qualifying Free Zone Persons.
How HAS Global Tax Consultants Can Help
Assess your eligibility for tax grouping.
Advise on the benefits and potential drawbacks for your business.
Handle the full application and registration process with the Federal Tax Authority (FTA).
Support with group tax planning, documentation, and annual return filing.
Assist with group changes or deregistration if needed.
Tax Registration FAQs
How does corporate tax grouping differ from VAT grouping in the UAE?
Corporate tax grouping lets UAE companies file one corporate tax return as a single entity, offset profits and losses, and apply the AED 375,000 tax-free threshold at the group level. VAT grouping allows related companies to file one VAT return and ignore VAT on transactions between group members. The main difference: corporate tax grouping is for income tax, with strict ownership rules, while VAT grouping is for VAT, focusing on simplifying VAT reporting and removing VAT on internal transactions. Both require separate applications and have different eligibility criteria.
What are the legal requirements for businesses to join a corporate tax group in the UAE?
To join a corporate tax group in the UAE, businesses must:
Be UAE resident legal entities (not individuals)
Have the parent company own at least 95% of each subsidiary
Ensure no member is an exempt or Qualifying Free Zone Person
Share the same financial year and accounting standards
Get approval from the Federal Tax Authority (FTA)
These rules let the group file one consolidated tax return.
How does the UAE's corporate tax grouping system impact small businesses?
The UAE’s corporate tax grouping can help small businesses by allowing them to file one tax return and offset losses within the group, reducing paperwork and tax bills. However, the AED 375,000 tax-free threshold and Small Business Relief apply to the whole group, not each company. All members share liability for group tax debts, and managing a group can be more complex. Small businesses should weigh the benefits and risks before joining a tax group.
Corporate Tax grouping
across the UAE
Streamline your UAE tax compliance and unlock group tax benefits