Answer:
Yes, the AED 375,000 threshold for the 0% Corporate Tax rate applies to the Tax Group as a single taxpayer, regardless of how many entities are included in the group. (Corporate Tax Guide: Tax Groups, CTGTGR1, Section 8.3.1)
As The Tax Group is treated as one taxable person. The reduced rate of 0% is applied only once on the first AED 375,000 of the Taxable Income of the group, not per individual entity.
Eligibility for Small Business Relief is also determined based on the consolidated revenue of the entire Tax Group. (Section 4.6.3 of the same Guide)
Example:
If three companies form a Tax Group and their combined Taxable Income is AED 1,000,000:
- The first AED 375,000 of the group’s income is taxed at 0%.
- The remaining AED 625,000 is taxed at the standard Corporate Tax rate (9%).
- The reduced rate is not applied three times.