Pre-grouping tax losses refers to the tax losses incurred by a subsidiary before becoming part of a tax group. In other words, they arise when a subsidiary’s deductible expenses exceed its taxable income during a specific financial period prior to its inclusion in the group. The UAE Corporate Tax Law provides a structured mechanism for the carryforward and offset of such losses, subject to certain conditions.  The treatment of pre-grouping tax losses is particularly significant for tax groups, as these losses can influence the group’s overall tax liability and strategic tax planning. This article will discuss the use and management…