The Consolidated Group (Income Tax) Rules & Guidelines On Registration Process

The Consolidated Group (Income Tax) Rules were published on 31 May 2019 through Legal Notice 110 of 2019. These rules became effective from year of assessment 2020 in relation to fiscal units having accounting periods commencing in 2019 and subsequent years.

Fiscal consolidation is completely optional and at the discretion of the entities whether to form a fiscal unit.

Conditions need to be fulfilled in order for entities to form a fiscal unit. These include:

• The companies need to have the same accounting period;
• The parent company needs to hold at least 95% of the voting rights of its subsidiaries, must have the right to 95% of the profits available for distribution and/or the right to 95% of the assets upon winding up. Two out of three of the above must be satisfied;