UAE businesses and tax groups

UAE businesses considering tax groups must pay close attention to eligibility criteria and potential restructuring due to the 95% ownership rule. Transfer pricing compliance is vital, requiring consistent policies for intra-group transactions. Tax loss restrictions prioritize pre-grouping losses, and foreign tax credits can lower overall corporate tax liability, though they lapse if unused. 

The parent company oversees group operations, including tax filings and transfer pricing records. Careful reconciliation between VAT and corporate tax groups is necessary. Aligning with international treaties is crucial for globally operating companies.

Source : https://gulfnews.com/