UAE Director and Officer Connected Person Rules: What FTA CTP010 Means for Founder Salaries and Board Compensation
FTA Public Clarification CTP010 has clarified how founder salaries, executive compensation, and board fees are treated under UAE Corporate Tax. Directors and Officers are classified as Connected Persons, meaning all remuneration must satisfy the arm’s length principle. Businesses must ensure compensation reflects genuine market value, maintain supporting documentation, and meet disclosure obligations to avoid Corporate Tax adjustments and compliance risks.