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Qualifying Group Relief

Unlock tax-saving opportunities with Qualifying Group Relief. Simplify your business finances with expert guidance.

1. Overview of Qualifying Group Relief​

Article 26 of the Corporate Tax Law permits tax-neutral transfers of assets or liabilities between Taxable Persons in the same Qualifying Group, subject to satisfaction of certain conditions. The relief is only available where both the Transferor and Transferee are members of the same Qualifying Group and the Transferor has elected for relief. ​

Want to learn more about Qualifying Group Relief?
Download the complete guide now!

Want to learn more about Qualifying Group Relief? Download the complete guide now!

1.1 What is a transfer? ​

A transfer involves conveying the legal and economic ownership of an asset or liability from one person to another. Examples include Sale or exchange, relinquishment of rights, sale-and-leaseback, exercising options to buy or sell or transfers under universal title etc.​

1.1.1 Consideration for transfer​

Qualifying Group Relief is available for transfers within a Qualifying Group without requiring consideration to be paid. If consideration is involved, it can take any form (cash or in-kind).​

1.2 Assets and liabilities eligible for Qualifying Group Relief​

Qualifying Group Relief applies only to the transfer of assets or liabilities held on capital account and recorded on the Transferor’s balance sheet. ​

2. Conditions to be a member of a Qualifying Group​

Transferor and Transferee are treated as members of the same Qualifying Group where required conditions are met. Before moving ahead, it is most important to define who is the Transferor and Transferee for Qualifying Group.​

Definition of Transferor and Transferee​

Want to learn more about Qualifying Group Relief?
Download the complete guide now!

Want to learn more about Qualifying Group Relief? Download the complete guide now!

2.2 Ownership condition​

2.1.1 Holder of Ownership Interest​

For the purpose of Qualifying Group Relief, ownership to be recognized when following conditions are met:​
Control Determination: Based on accounting standards, control exists if the holder:​

Want to learn more about Qualifying Group Relief?
Download the complete guide now!

Want to learn more about Qualifying Group Relief? Download the complete guide now!

Meet the Expert

Mubashir Islam, ACCA​

Senior Manager • Tax and Financial Advisory • DeFi Regulatory Reporting ​

Sikandar Ali, ACA ​​

Tax Compliance Manager • Regulatory Advisor​​

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