Corporate Tax Groups in UAE: Pros and Cons You Should Know

Pros of Forming a Corporate Tax Group

Starting corporate tax groups in UAE can be a streamlined way to meet compliance requirements. However, before deciding, it's essential to seek advice from?corporate tax experts in Dubai. Here are the key advantages of forming a corporate tax group:

• Single?UAE corporate tax registration.
• Only one tax filing is needed.
• No need to apply Arm's length principles and Transfer Pricing Documentation.

Cons of Forming a Corporate Tax Group

Despite its advantages, forming a?UAE corporate tax group?also comes with certain drawbacks. Here are some of the disadvantages to consider:

• The tax exemption limit remains the same, regardless of the number of members in the tax group.
• Compulsory preparation of consolidated financial statements.
• Shared liabilities among the group members, can lead to joint responsibility for tax obligations.

To know more about Pros, Cons and Conditions to form Corporate Tax Groups in UAE, check out here.