Corporate Tax Grouping in the UAE

Understanding Corporate Tax Grouping in the UAE

Corporate Tax Grouping permits qualifying parent companies and subsidiaries to consolidate their tax position under one tax return. While this offers administrative and tax advantages, eligibility is subject to strict ownership, control, and compliance conditions.

Ongoing professional oversight is essential, as improper formation or ongoing non-compliance may result in penalties, rejection of group status, or exposure to tax adjustments.

Our Corporate Tax Grouping Services

Eligibility Assessment & Group Structuring

We conduct a comprehensive review of your corporate structure to determine eligibility for forming a tax group. Our assessment includes:

• Ownership and control analysis (minimum 95% shareholding)
• Legal and financial structure review
• Residency and taxable person verification
• Assessment of excluded entities and activities

Based on our findings, we advise on optimal group structuring aligned with your business and tax objectives.

Formation & Registration of Corporate Tax Groups

German Fintax Consultancy manages the complete process of forming a Corporate Tax Group, including:

• Preparation of tax group election documentation
• Registration and approval coordination with the Federal Tax Authority
• Designation of the parent entity as the representative taxable person
• Alignment of accounting periods and compliance requirements

This ensures a smooth and fully compliant transition to group taxation.

Consolidated Tax Compliance & Return Filing

Once a tax group is formed, all members are treated as a single taxable person. We support ongoing compliance through:

• Consolidation of financial results across group entities
• Computation of group taxable income
• Preparation and submission of a single corporate tax return
• Monitoring compliance obligations across all group members

This approach reduces administrative complexity while ensuring regulatory accuracy.

Tax Optimisation & Loss Utilisation

One of the key advantages of corporate tax grouping is the ability to offset profits and losses within the group. Our advisory includes:

• Efficient utilisation of tax losses across group entities
• Reduction of overall tax exposure through consolidation
• Strategic planning for intercompany transactions
• Advisory on restructuring to maximise tax group benefits

This enables businesses to optimise tax efficiency while staying fully compliant.

Ongoing Advisory & Risk Management

Corporate tax groups must continuously meet eligibility conditions. We provide ongoing support, including:

• Annual eligibility and ownership reviews
• Advisory on changes in group structure or ownership
• Support with group entry or exit of entities
• Assistance during FTA audits, reviews, or inquiries

Proactive monitoring ensures your tax group status remains intact and compliant.

Why Choose German Fintax Consultancy?

Businesses choose German Fintax Consultancy for Corporate Tax Grouping because we offer:

• Deep technical expertise in UAE Corporate Tax legislation
• Practical experience with complex group structures
• End-to-end support from assessment to ongoing compliance
• Clear guidance focused on risk mitigation and efficiency

We help businesses unlock the benefits of tax grouping while maintaining full confidence with regulators.