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UAE Tax Grouping: The Ultimate Business Guide
What is a UAE Tax Group?
A UAE Tax Group allows two or more taxable persons (companies) to be treated as a single entity for Corporate Tax purposes under the Federal Decree-Law No. 47 of 2022. When approved by the Federal Tax Authority (FTA), the group is taxed as a single unit, with one parent company acting as the representative member.
This structure can offer major tax and administrative benefits, particularly for businesses with multiple subsidiaries in the UAE.

Key Benefits of Forming a Tax Group
➡️ Single Tax Return
Only one Corporate Tax return needs to be filed for the entire group, reducing the compliance burden.
➡️ Offset Losses Within Group
Losses from one group entity can be used to offset profits from another, helping to minimize overall tax liability.
➡️Simplified Intra-group Transactions
Transactions between group members are generally ignored for tax purposes, eliminating the need for detailed documentation and transfer pricing compliance.
➡️Cost Efficiency
Streamlined compliance and reduced tax liability often lead to significant financial and administrative savings.
🛡️ Eligibility Criteria for UAE Tax Grouping
To form a tax group in the UAE, the following conditions must be met:
The parent company holds at least 95% of the share capital and voting rights in each subsidiary.
All group members must be resident juridical persons.
None of the companies should be exempt or subject to free zone tax incentives.
All group members must have the same financial year and use the same accounting standards.
If any of these conditions are not met, the FTA may reject the application.
How to Form a Tax Group: Step-by-Step
Determine Eligibility
Evaluate if the group meets the 95% ownership and other FTA criteria.Appoint a Representative Member
Usually the parent company, responsible for filing the group’s tax return and handling FTA correspondence.Submit the Tax Group Application
Apply through the EmaraTax portal with all required documentation.Receive FTA Approval
Once approved, the tax group will receive a single Tax Registration Number (TRN).File Consolidated Tax Return
Going forward, the representative member will submit one Corporate Tax return on behalf of the group.
Points to Consider Before Forming a Tax Group
Once formed, a tax group is jointly liable for the Corporate Tax obligations of all its members.
Any member leaving or joining the group must be notified to the FTA, and fresh assessments may be triggered.
Proper accounting and tax planning is critical to ensure the structure remains compliant and beneficial.
Why Choose Hussain Al Shemsi Chartered Accountants?
At Hussain Al Shemsi Chartered Accountants, we offer expert tax advisory and compliance services tailored for businesses in the UAE. Our team ensures:
Accurate assessment of eligibility for Tax Grouping
Full application support through the EmaraTax portal
Seamless coordination with the FTA
Ongoing compliance, filing, and reporting support
Strategic tax planning to optimize group structures
Whether you’re a growing conglomerate or an SME looking to streamline your operations, forming a UAE Tax Group can be a game-changer.
Need Assistance?
At Hussain Al Shemsi Chartered Accountants, we are here to support you through every step of the update process.
📩Let us help you navigate the UAE Corporate Tax regime with confidence.
How can we help you?
Get in touch with Hussain Al Shemsi Chartered Accountants for expert auditing, accounting, tax, and advisory services in the UAE.
- +971 50 3636231