Salary Benchmarking Reports in UAE: Corporate Tax Compliance Guide for Businesses

As the UAE Corporate Tax regime continues to evolve, businesses are becoming more aware of the importance of maintaining proper documentation and justifiable financial transactions. One area that is receiving increasing attention is payments made to owners, directors, shareholders, and senior management.

Many UAE businesses pay salaries, bonuses, management fees, or other forms of remuneration to connected persons within the company. While these payments may appear normal from an operational perspective, the Federal Tax Authority (FTA) may assess whether such payments are commercially justifiable and aligned with market value or arm’s length principles.

If questioned by the FTA, businesses must be able to support and justify the amount paid.