# UAE corporate tax group eligibility checker

> UAE resident companies can form a tax group, filing one corporate tax return, if a parent holds at least 95% of each member's shares, voting rights and profits, all members share the same financial year and accounting standards, and none is an exempt person or Qualifying Free Zone Person.

Interactive calculator: https://www.countify.ae/tools/tax-group-checker · Updated 2026-10-14 · Countify UAE

## Tax group eligibility

Common situations.

| Situation | Can form a tax group | Conditions not met |
| --- | --- | --- |
| 100% owned UAE subsidiaries | Yes | 0 |
| 90% owned subsidiary | No | 3 |
| One member is a QFZP | No | 1 |

Groups owned 50%–95% cannot form a tax group but can still transfer losses between members under separate rules (75% common ownership).

## Pros and cons of a tax group

A tax group is treated as a single taxable person. Intra-group transactions are eliminated, losses offset profits automatically, and there is one return. The trade-off: all members are jointly liable for the group's tax, the AED 375,000 0% band applies once (not per company), and joining or leaving has its own rules.

## Applying

The parent applies on EmaraTax, normally before the end of the tax period from which the group should apply. Our [corporate tax team](https://www.countify.ae/services/corporate-tax) models the group and stand-alone positions before you decide.

## Legal basis

- Federal Decree-Law No. 47 of 2022, Article 40 (https://mof.gov.ae/corporate-tax/)

## Frequently asked questions

### What ownership is needed for a UAE tax group?

At least 95% of share capital, voting rights and entitlement to profits and net assets, directly or indirectly.

### Can a free zone company join a tax group?

Yes, unless it is a Qualifying Free Zone Person.