What are the conditions for transferring a Tax Loss within a Tax Group

Tax Group
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What are the conditions for transferring a Tax Loss within a Tax Group

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A Parent Company and one or more Subsidiaries can make an application to the FTA to form a Tax Group where all of the following conditions are satisfied:

  • The Parent Company and each Subsidiary are juridical persons;

  • The Parent Company and each Subsidiary are Resident Persons;

  • The Parent Company owns at least 95% of the share capital of each Subsidiary, either directly or indirectly through one or more Subsidiaries;

  • The Parent Company owns at least 95% of the voting rights of each Subsidiary, either directly or indirectly through one or more Subsidiaries;

  • The Parent Company is entitled to at least 95% of each Subsidiary’s profits and net assets, either directly or indirectly through one or more Subsidiaries;

  • Neither the Parent Company nor the Subsidiaries are an Exempt Person;

  • Neither the Parent Company nor the Subsidiaries are a Qualifying Free Zone Person;

  • The Parent Company and each Subsidiary must have the same Financial Year; and

  • The Parent Company and each Subsidiary must prepare their Financial Statements using the same Accounting Standards.