Definition

Tax Grouping under UAE Corporate Tax allows a parent company and its subsidiaries to be treated as a single taxable entity, filing one consolidated return.

Key points

• Parent must own at least 95% of shares and voting rights.
• Group files one Corporate Tax Return and pays tax collectively.
• Intra-group transactions are eliminated.
• All members are jointly liable for tax obligations.

Practical example

A UAE parent owns three subsidiaries. Instead of filing four returns, they form a tax group and file one consolidated return.

Why it matters

Simplifies compliance, reduces administrative costs, and prevents double taxation within groups.