Should I form a tax group for my companies, or file separately for each?

Forming a tax group lets two or more companies be treated as a single taxable person and file one consolidated tax return instead of a separate return for each entity — but it takes more than 95% common ownership alone. That threshold is a real requirement (the parent must own at least 95% of each subsidiary's share capital), but it applies alongside several other conditions that must all be met together: tax residency, voting rights, entitlement to profits and net assets, and the type of legal person. Once those conditions are met, the group's results are computed on a consolidated basis, letting one member's tax loss offset another member's taxable income — subject to the specific rules on losses incurred before the group was formed. The main downside is that group members become jointly and severally liable for the corporate tax and administrative penalties due from the group for the periods they were members — not that any tax issue at one company automatically spreads to the others, but the liability for settling it is shared.

This decision shouldn't be made just to save filing time — you need to assess your ownership structure, whether your companies genuinely have varying profits and losses that would benefit from offsetting, and whether you're comfortable with that shared liability. At RASEEKH, we assess your related companies' position and show you the actual impact of grouping on your total tax liability before you make the decision, not after you've filed it.