UAE Group Relief CT Compliance: Main Requirements

UAE CT Group Relief: Main Compliance Requirements to Know

UAE started the corporate tax regime (CT) to modernize its business world. Companies now need to follow new rules, especially if they want to use group relief. The FTA tries to make things easier by giving guides about exemptions and relief. One important topic is qualifying group relief. Mubarak Al Ketbi (MAK) Auditing explains what compliance steps your company needs to take so you don’t face problems.

Main Compliance Steps for UAE Group Relief

The FTA guide shows two big compliance rules. Every company that wants group relief must follow these. If a company ignores them, it could lose tax benefits or face fines.

1. Transferor Must Make the Election

• When a company (the transferor) wants group relief, it must make an official election for each transfer, after checking all Article 26 CT law conditions.
• Once made, you can’t undo or reverse this election unless the FTA says so.
• The election works for all assets or liabilities moved on the capital account during the chosen tax period and for the special transfer you mention.
• Each transferor must make its own election for every relief inside the group.
• If one company makes the election, it won’t apply to future asset or liability transfers by another group member. Each election is separate.

2. Keeping Good Records

• Record keeping is a key part of group relief compliance.
• Both transferor and transferee must save all documents about the transfer agreement and its terms.
• You must keep these records as the law asks, under Article 26 of the CT law.
• Good record keeping helps if the FTA checks your compliance or asks for proof.

What Happens If You Don’t Comply?

If a business ignores these steps, the risks are high:

• The company can face fines, penalties, or even legal action.
• The FTA may cancel the relief or take it back (clawback).
• The company could lose its right to get group relief in the future.
• You might also pay more tax or lose other exemptions.

How Can Companies Avoid Trouble with Group Relief?

To protect your business, Mubarak Al Ketbi (MAK) Auditing recommends:

• Make sure you meet every CT rule for group relief.
• Each transferor should make the election at the right time.
• Save all paperwork, agreements, and proof for every transfer.
• Review your compliance yearly.
• Get expert help so you’re always ready for any FTA question.

What Can Help? – Mubarak Al Ketbi (MAK) Auditing

When you want to stay safe with group relief, Mubarak Al Ketbi (MAK) Auditing will guide you every step of the way. Our team:

• Checks your company for CT compliance,
• Helps make and record every election,
• Prepares all your paperwork for FTA checks,
• Gives you custom advice and strategies,
• Trains your team to “dot every i and cross every t.”

For more information:

• Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
• Contact/WhatsApp: +971 50 276 2132