Averyx Group

  It is common for companies to operate within a group. Fundamentally, the basis of a group formation is a common ownership. The basic  Corporate Tax  rules applicable on a company by company basis and could in some circumstances result in unfair tax consequences for companies within a group. The tax authority in UAE has incorporated various rules in the Corporate Tax Decree Law which aim to eliminate or minimize such unfair tax treatments by recognizing the existence of Tax Groups of companies. Let us see how a Tax group can be formed and what is its impact on the group members. Who can form a Tax Group? Two or more Taxable Persons who are Juridical Persons and resident in UAE are eligible to form a Tax Group, where one Taxable Person is a Parent Company who holds directly or indirectly at least 95% of all other Taxable Person’s (Subsidiaries): · Share Capital · Voting Rights · Profits and Net Assets Additionally, all group companies should follow the same Financial Year...