# What are the conditions to be satisfied to form a Tax Group?

**URL:** <https://uaectfaqs.com/t/what-are-the-conditions-to-be-satisfied-to-form-a-tax-group/61>\
**Category:** Tax Group\
**Created:** [September 10, 2024, 5:32am UTC](https://uaectfaqs.com/t/what-are-the-conditions-to-be-satisfied-to-form-a-tax-group/61 "2024-09-10T05:32:33Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![FAME](https://yyz1.discourse-cdn.com/flex009/user_avatar/uaectfaqs.com/fame/32/7_2.png) [@FAME](https://uaectfaqs.com/u/FAME)\
**Post date:** [September 10, 2024, 5:32am UTC](https://uaectfaqs.com/t/what-are-the-conditions-to-be-satisfied-to-form-a-tax-group/61/1 "2024-09-10T05:32:33Z")

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What are the conditions to be satisfied to form a Tax Group?

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<div class="post-metadata">

**Author:** ![FAME](https://yyz1.discourse-cdn.com/flex009/user_avatar/uaectfaqs.com/fame/32/7_2.png) [@FAME](https://uaectfaqs.com/u/FAME)\
**Post date:** [September 10, 2024, 5:32am UTC](https://uaectfaqs.com/t/what-are-the-conditions-to-be-satisfied-to-form-a-tax-group/61/2 "2024-09-10T05:32:47Z")

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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.