Group structure tools: tax groups, group transfers and partnerships

Steps

1. 1

   Open Tax Intelligence, select More, then Tax Groups

   In the left menu choose Tax Intelligence and select More. Under Corporate tax structure, select Tax Groups. The note on the screen states the rule: a tax group files a single consolidated corporate tax return, the 375,000 dirham threshold applies once to the group total, and transactions between members are eliminated.

   • Select More
2. 2

   Read the notice about organisation-level roles

   With a Tax manager role held for one entity only, the page says that tax groups are managed at organisation level: a tax group spans several legal entities, so it needs a role held for the whole organisation. Ask an administrator to assign the role at organisation level. Here the organisation administrator, Layla Hassan, does that off camera, in Access control under People and assignments.

3. 3

   Refresh the page and select Create Tax Group

   Once the role is granted, refresh the page. The notice is replaced by Create Tax Group. Select it. In Group Name type the name the group will file under. Group TRN is optional: the tax registration number the FTA gives the group once it is approved; leave it empty until then. The note says that the entity you are in becomes the parent of the group, and that a free zone company claiming the 0 percent rate cannot create or join a tax group.

   • Select Create Tax Group
   • Type Group Name: Meridian Souq UAE Tax Group
4. 4

   Select Create Tax Group in the form

   Select Create Tax Group at the bottom of the form. The group is listed with the status Elected and Meridian Souq Trading LLC as its parent and only member, 100 percent owned. Add Member adds the group's other mainland companies. Below are the year list and Compute Group CT Return, for the group's consolidated return, Saved group CT returns, and Loss Transfers, for moving a loss from one member to another.

   • Select Create Tax Group
5. 5

   Go back to More and select Group Transfers

   Select Tax at the top left to go back, select More, then Group Transfers. This screen records assets moved between companies in a qualifying group. Such a transfer can be made at book value with no gain taxed, as long as the conditions hold for two years; the yellow note explains the two-year clawback window.

6. 6

   Select Record Transfer and describe the asset

   Select Record Transfer. In Asset Description say what was transferred. In Transfer Date enter the date it moved: 1 July 2025. In Relief Type choose Qualifying Group, Article 26, for a transfer between group companies; Business Restructuring, Article 27, is for the transfer of a whole business.

   • Select Record Transfer
   • Type e.g. Office building at JAFZA: Six delivery vans transferred to the group's online store company
   • Select Select relief type...
   • Choose Qualifying Group (Art. 26)
7. 7

   Enter the two companies

   In Transferor entity choose the company giving up the asset, Meridian Souq Trading LLC, and in Transferee entity the company receiving it, Meridian Souq E-Commerce FZ-LLC. Both lists offer the entities of your organisation.

   • Select Not specified
   • Choose Meridian Souq Trading LLC
   • Select Not specified
   • Choose Meridian Souq E-Commerce FZ-LLC

   

8. 8

   Enter the values and the ownership

   In Market Value at Transfer type what the asset was worth: 540000. In Book Value at Transfer type its value in the accounts: 420000. The difference, 120,000, is the gain that is deferred. In Ownership percent at Transfer type the common ownership of the two companies: 100. The relief needs at least 75.

   • Type e.g. 5000000: 540000
   • Type e.g. 3000000: 420000
   • Type Min. 75%: 100
9. 9

   Add a note and select Record Transfer

   In Notes add the reference of the transfer agreement. Then select Record Transfer at the bottom of the form.

   • Type Additional notes...: Vans transferred at book value under transfer agreement TA-2025-07.
   • Select Record Transfer
10. 10

    Read the transfer in the list

    The transfer is listed with its date, relief type, market value and book value, its ownership percentage, the status Active and the date the clawback window ends, 1 July 2027, two years after the transfer. The red Clawback button records that a condition has failed and the deferred gain is to be taxed; leave it alone unless that has really happened. Check this list before any group asset is sold outside the group.

11. 11

    Go back to More and select Partnerships

    Go back, select More, then Partnerships. Partnership Allocations is for an unincorporated partnership that is treated as transparent for tax: its taxable income is not taxed in the partnership but allocated to the partners. Meridian Souq Trading is a company, so the list is empty.

12. 12

    Select Add Partner to read the form

    Select Add Partner. The form takes the Partner Name, the Allocation Percentage, which is that partner's share of the income, the Fiscal Year and optional Notes. A partnership adds one line for each partner, and the shares for a year should add up to 100.

    • Select Add Partner
13. 13

    Close the form without saving

    This entity has no partners, so select the cross to close the form without saving.

    • Select Close