*DO YOU KNOW!!!* 🤔
TO FORM A TAX GROUP IN THE NEW UAE CORPORATE TAX LAW
Two or more Taxable Persons who meet certain conditions (mentioned below) can apply to form a “Tax Group” and be treated as a single Taxable Person for Corporate Tax purposes.
To form a Tax Group, both the parent company and its subsidiaries must be resident juridical persons, have the same Financial Year and prepare their financial statements using the same accounting standards.🤚
Additionally, to form a Tax Group, the parent company must:
• own at least 95% of the share capital of the subsidiary;
• hold at least 95% of the voting rights in the subsidiary; and
• is entitled to at least 95% of the subsidiary’s profits and net assets.
The ownership, rights and entitlement can be held either directly or indirectly through subsidiaries, but a Tax Group cannot include an Exempt Person or Qualifying Free Zone Person. đź‘Ś
