UAE Federal Tax Authority Updates Corporate Tax Guide on Tax Groups

The UAE Federal Tax Authority (FTA) issued an updated Corporate Tax Guide on Tax Groups (CTGTGR1) on 12 November 2026, setting out compliance clarifications for corporate structures, according to CLA Emirates.

The guide outlines specific auditing and aggregation standards for consolidated financial statements. It confirms that unincorporated partnerships cannot join a Tax Group unless they are recognized as taxable entities in their own right.

Under the updated guidance, Tax Groups are permitted to elect tax depreciation on investment properties subject to specified procedural conditions. It also clarifies consolidated-level rules regarding the 75% statutory cap on pre-grouping tax loss carry-forwards and net interest expenditure deductions.

Additionally, the revised rules specify that foreign tax credits must now be calculated at the aggregate Tax Group level instead of separately by each individual constituent entity.