Definition

Business Restructuring Relief is a provision in UAE Corporate Tax law that allows companies to transfer assets or liabilities within a group during a reorganization without triggering an immediate tax liability.

Key points

• Applies to mergers, spin-offs, and intra-group transfers.
• Relief is conditional on meeting ownership and continuity tests.
• Gains and losses are deferred until the assets are disposed outside the group.
• Requires reporting through the Corporate Tax Return.

Practical example

A parent company transfers a building to its wholly owned subsidiary. Under Business Restructuring Relief, no corporate tax is charged at the time of transfer.

Why it matters

Supports business reorganizations and group efficiency without unnecessary tax burdens.