FAQ – Article 26 Transfers within a qualifying group

Source: https://mof.gov.ae/corporate-tax-faq/

  1. Will there be any relief available for transfers between group companies?

Yes. Companies that are part of a ‘Qualifying Group’ can transfer assets and liabilities between themselves at their net book value. This means that the transfer can be carried out tax neutrally (i.e. not give rise to a gain or loss for CT purposes).

  1. What is a Qualifying Group?

A Qualifying Group exists where all of the following conditions are met:

  • The members are juridical persons which are UAE residents or non-resident persons that have a permanent establishment in the UAE;
    ● Either owns 75% or more of the other, or a third party owns 75% or more of both entities;
    ● Neither member is an Exempt Person;
    ● Neither member is a Qualifying Free Zone Person; and
    ● Members prepare their financial statements using the same accounting standards, and have the same financial year.

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