MOF issued Cabinet Decision No 125 on Tax Grouping states:
- UAE Parent company must own at least 95% of the voting rights and share capital in each of the UAE entity. Share capital” means the nominal, issued and paid up share capital, or Membership or Partnership Capital of each subsidiary.
- If any member of a Tax Group becomes a resident in foreign jurisdiction, then such member shall be treated as leaving the Tax group from the beginning of the Tax period in which it became a resident in such foreign jurisdiction.
- A juridical person that is incorporated or otherwise established or recognized under legislation of a foreign jurisdiction and that is effectively managed and controlled from UAE, shall be eligible to become a member of tax group, if it maintains documentation that supports the position that it is not resident for tax purposes in foreign jurisdiction.