On 26 September 2023, FTA has released Decision No. 12 of 2023 stating the Conditions for Forming the Tax Group by Subsidiaries of a Government Entity under CT Law which are as follows:-
- Government Entity is required to have at least 95% of the share capital, voting rights and profit entitlement in the Subsidiary .
- The Government Entity which is exempt from tax is not a member of the Tax Group.
- A Subsidiary of a Government Entity is not a member of the Tax Group where such Subsidiary is an exempt person. The Government Entity appoints one of the Subsidiaries as representative of the Tax Group. The Subsidiary appointed as representative of the Tax Group shall submit an application to the Authority to form the Tax Group.