Group Transfer of Losses under UAE Corporate Tax
Transfer of losses amongst Group Companies – Conditions
- Tax losses can be transferred to UAE group company who are at least 75% commonly owned – With conditions
- Tax losses cannot be transferred from : –
- Exempt companies ;
- Companies benefitting from 0% Free Zone CT regime.
- The tax losses will be limited to 75% of the taxable income of the company receiving the losses in the relevant period.
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Groups – Transfer of losses – Case Study 1
| NATURE OF INCOME | INCOME (AED) | LOSS RECEIPT (AED) | AMOUNT (AED) |
| LOSS of CO 1 (in MAINLAND) | (15,00,000) | ||
| INCOME of CO 2 (in MAINLAND) | 18,00,000 | ||
| INCOME of CO 3 (in FREEZONE) | 5,00,000 | ||
| TOTAL TAXABLE INCOME | |||
| LOSSES ADJUSTED | (13,50,000) | ||
| TAXABLE INCOME | |||
| TAX @ 9% | |||
Groups – Transfer of Losses under UAE Corporate Tax – Case Study 1
| NATURE OF INCOME | INCOME (AED) | SET OFF (AED) | AMOUNT (AED) |
| LOSS of CO 1 (in MAINLAND) | (15,00,000) | ||
| INCOME of CO 2 (in MAINLAND) | 18,00,000 | (1350,000) | 4,50,000 |
| INCOME of CO 3 (in FREEZONE) | 5,00,000 | 5,00,000 | NIL |
| TOTAL TAXABLE INCOME | 4,50,000 | ||
Learn More about “Group Transfer of Losses under UAE Corporate Tax” – Subscribe UAE Corporate Tax Course
