Corporate Tax - Group Relief

Frequently Asked Questions

Yes, companies that belong to a ‘Qualifying Group’ will have the ability to transfer assets and liabilities among themselves at their net book value. It ensures that such transfers can be conducted without tax implications, meaning they will not result in a taxable gain or loss for corporate tax purposes.

A Qualifying Group is characterized by meeting the following criteria:

  • The members of the group consist of juridical persons, including both residents of the UAE and non-resident entities with a permanent establishment in the UAE.
  • There is ownership of 75% or more between the entities within the group, either directly or through a third party.
  • None of the group members are classified as Exempt Persons for tax purposes.
  • None of the group members are Qualifying Free Zone Persons.
  • All members of the group prepare their financial statements using the same accounting standards and have the same financial year.

Yes, the UAE CT regime provides relief for certain types of transactions such as legal mergers, business mergers, spin-offs, and other transfers and restructuring transactions. When these transactions meet the specified conditions, they can be carried out without giving rise to a taxable gain or loss for corporate tax purposes.

Schedule a Call Back

Schedule a consultation today and take the first step towards your goals.