Connected Person Context
Recipient relationship, legal position, actual authority and services being remunerated.
UAE Corporate Tax · Article 36 Support
Connected Person Salary / Compensation Benchmarking in the UAE
Independent Market Value and arm's-length compensation assessment for owners, shareholders, directors, officers, CEOs, managing directors, partners and family-business executives.
UAE-focused executive evidence
Fixed, variable and benefits assessed
Tax-adviser-ready reporting
Connected Person cash remuneration
Anonymised REAP case
110,000
P25
125,000
P50
140,000
P75
152,000
Actual pay
165,000
P90
Chart finding: AED 152,000 monthly cash remuneration sits between P75 and P90 and is supportable in the upper quartile after considering multi-entity scope, governance, and shareholder-facing responsibilities.
Introduction
Connected Person remuneration in the UAE is independent Market Value evidence for pay to owners, directors, officers, and other Connected Persons under UAE Corporate Tax. As ReapHR - HR Services & Recruitment Agency in Abu Dhabi, REAP prepares the compensation evidence your board and tax adviser can review - not a filing position, deductibility decision, or transfer-pricing opinion.
Use this page when you need arm's-length support for shareholder-executive or director pay, a multi-entity Connected Person package, or a dual-capacity arrangement that a generic salary range cannot explain. For senior hiring support alongside remuneration evidence, see executive recruitment UAE and HR advisory services UAE.
The question UAE business owners are being asked
Can you demonstrate that the Connected Person's remuneration reflects the Market Value of the services actually performed?
For UAE Corporate Tax purposes, payments or benefits to a Connected Person are deductible only to the extent they correspond with Market Value and are incurred wholly and exclusively for the business. A management title, shareholder approval or payroll record alone does not establish that the amount is arm's length.
AED 500,000 is the Connected Persons schedule disclosure threshold - not the start of the Market Value requirement.
Substance over title - authority, actual duties, business scale, risk, results and separately identifiable services matter. Separate fixed salary, allowances, bonus, commission, benefits and employer on-costs before judging combined remuneration.
Taxable Person, Related Party and Tax Period classifications remain with the client's qualified advisers.
REAP prepares the compensation evidence: role mapping, UAE market comparators, pay-component analysis, Market Value conclusion and supporting appendices. The client's tax adviser determines the final Corporate Tax treatment and filing position. REAP does not provide tax, legal, audit or transfer-pricing advice.
Selected UAE client references
Organisations REAP has supported with remuneration benchmarking and compensation validation. Names are shown for credibility only - no confidential case details.
| Organisation | Sector |
|---|---|
| Manor Hall International School | Education |
| United Private School | Education |
| Madar International School | Education |
| Al Ain American School | Education |
| CurePlus Medical Center | Healthcare |
| Syncmedia | Technology |
| Master Cake | Food & Retail |
| Al Bada Resort | Hospitality |
What you receive - report deliverables
The engagement produces structured Market Value evidence - not a single salary band. Each report is built so a board, auditor, or tax adviser can review the Connected Person context, the pay components, and the comparator logic together.
Functional and Role Analysis
Responsibilities, decision authority, P&L exposure, governance, entity coverage and business scale.
Remuneration Breakdown
Basic salary, allowances, bonus, commission, benefits, total cash and employer on-costs - assessed separately.
UAE Market Comparators
Relevant UAE/GCC executive evidence, adjusted for sector, scope, scale and comparability.
Market Value Assessment
Whether remuneration components are commercially supportable on an arm's-length basis.
Evidence Appendices
Comparator logic, calculations, assumptions, limitations and the executive conclusion.
How REAP assesses Connected Person remuneration
REAP turns role substance and pay components into an adviser-ready Market Value conclusion. Scope, evidence requirements, fee and delivery schedule are confirmed before the assignment begins.
1
Connected Person scoping
Confirm recipient, relationship, entity, Tax Period, remuneration components and intended use.
2
Evidence collection
Review contracts, job scope, organisation, payments, business results and evidence of services.
3
Substance-based role mapping
Map real authority, accountability, business scale and multi-entity responsibilities.
4
UAE comparator analysis
Assess executive evidence and record comparability, adjustments and limitations.
5
Arm's-length remuneration assessment
Evaluate fixed pay, variable pay, commission and benefits individually and together, avoiding duplication.
6
Adviser-ready report
Provide Market Value conclusion, executive summary, calculations and supporting appendices.
Case Studies
Discuss your Connected Person assessment
Connected Person case studies
Executive plus commission — GM/MD with commercial incentives
A GM/MD package combined fixed leadership remuneration with revenue-linked commercial incentives. Treating total cash as if it were a pure salary would have ignored the different risk and…
Impact
Market Value evidence delivered
Read case study
Dual-capacity remuneration — General Manager and Real Estate Agent
The same individual acted as General Manager and personally performed real-estate agency work paid through transaction commission. Collapsing fixed leadership pay and personally earned commission into one cash…
Impact
Market Value evidence delivered
Read case study
Group Connected Person — one executive, several companies
One senior executive received remuneration tied to several group companies, with governance and shareholder-facing duties across entities rather than inside a single payroll role. A single-title market range…
Impact
Market Value evidence delivered
Read case study
Fees
Starting fees reflect executive-led Connected Person work. Final pricing depends on recipients, entities, pay components, and available evidence. REAP confirms scope, evidence requirements and a formal quotation before work begins.
Senior Leadership Assessment
AED 8,000
Starting fee
Director, officer, general manager, functional head or senior family-business leader with primarily fixed remuneration.
Executive or C-Suite Assessment
AED 15,000
Starting fee
CEO, founder, shareholder-executive, CFO, COO, managing director, group executive or other Connected Person.
Complex Remuneration Assessment
Custom
Starting fee
Multiple entities, dual roles, commission, bonus, related-party services, benefits, on-costs or several recipients.
Note: Starting fees exclude 5% VAT. Multiple Connected Persons and group-company arrangements are quoted after reviewing recipients, entities, pay components and available evidence.
REAP provides remuneration benchmarking, not tax, legal, audit or transfer-pricing advice. Formal scope and terms will be confirmed separately.
FAQs - Connected Person remuneration UAE
Connected Person remuneration includes payments or benefits a UAE Taxable Person provides to an owner, director, officer, partner or Related Party under Article 36. Salary, allowances, bonus, commission, and benefits may all count. Confirm Connected Person status and tax treatment with a qualified adviser before filing.
The FTA Corporate Tax Return uses AED 500,000 as the Connected Persons schedule disclosure threshold, including aggregation rules. It is not where the Market Value requirement begins. Where owner, director or shareholder-executive pay is material, independent remuneration benchmarking helps evidence the amount reported as Market Value.
Market Value is not established merely because pay was approved internally or processed through payroll. The assessment asks what independent parties might pay for comparable services, weighing actual duties, authority, business scale, financial responsibility, sector, geography and the full remuneration structure.
Not automatically because of the title alone. Ownership, control, legal appointment, ability to bind the entity and ultimate strategic decision-making may be relevant. REAP benchmarks remuneration once Connected Person scope is confirmed; legal and tax classification should be set by the client's tax or legal adviser.
Under the UAE Corporate Tax framework, a payment or benefit to a Connected Person is deductible only to the extent it corresponds with Market Value and meets the business-purpose requirement. Any required adjustment and final filing treatment must be confirmed by the client's qualified tax adviser.
Yes. This matters where an executive performs more than one function or receives fixed salary, performance bonus, sales commission, allowances, family benefits or employer on-costs. REAP tests market support for each component, then reviews combined remuneration without treating total cash as one salary figure.
The report normally includes Connected Person context, functional analysis, role mapping, company and financial context, UAE or GCC market evidence, remuneration-component analysis, comparator screening, a clear Market Value conclusion, assumptions, limitations and supporting appendices. Scope is confirmed in writing before appointment.
Yes. The report is designed to provide independent compensation evidence for professional review, internal governance and Corporate Tax discussions with your advisers. REAP provides remuneration benchmarking and does not replace tax, legal, audit or transfer-pricing advice from the client's appointed advisers.
Typical information includes the employment or service agreement, job description, organisational chart, remuneration breakdown, bonus or commission terms, evidence of services performed, entity and group structure, business scale, headcount, financial results and relevant board resolutions. Exact requirements depend on the case.
A review may be appropriate annually, or when the role, business scale, remuneration structure, ownership, responsibilities or financial performance changes materially. The client's tax adviser should determine what Market Value evidence is required for each Tax Period under UAE Corporate Tax.
REAP prepares the compensation evidence: role mapping, UAE market comparators, pay-component analysis, Market Value conclusion and supporting appendices. The client's tax adviser determines the final Corporate Tax treatment and filing position. REAP does not provide tax, legal, audit or transfer-pricing advice.
Confidential Connected Person assessment
Do you have the evidence behind the remuneration reported as Market Value?
REAP will clarify the recipient, entity, services, remuneration components, evidence required, fee, and delivery schedule before the assignment begins.
Select your requirement:
- Owner / shareholder remuneration
- CEO / director / officer remuneration
- Executive salary plus bonus or commission
- Multiple Connected Persons / group entities