UAE Corporate Tax: Guidelines issued on forming ‘tax groups’ – what should business do?

Dubai: In a significant update to the UAE corporate tax framework, guidelines have been issued on which businesses can create ‘tax groups’.

Under a ‘tax group’ status, the parent company and subsidiaries can have a unified corporate tax return each financial year.

So, under the guidelines, a tax group can be formed only if the parent company or its major shareholder owns 95 per cent stake in ‘each’ of the subsidiaries.