If you’re a solopreneur or the owner of a single-shareholder company in the UAE, this one’s for you — especially now that you’ve filed at least one Corporate Tax return.
Many single owners work full-time in their own business but draw no salary, simply taking profit instead. The common reasoning: “The company isn’t making much profit, so I shouldn’t book a salary.” This video explains why that approach can put you offside with the Federal Tax Authority (FTA).
The key point: the FTA isn’t concerned with whether you claim a deduction or not. What it looks at is whether your transactions with your own company are at arm’s length — the principle that governs Connected Persons and Related Parties under UAE Corporate Tax Law.
As a single shareholder, you’re actively running the business — bringing technical know-how, financial expertise, strategic direction, and years of experience. Had you done that same work as an employee elsewhere, you’d have earned a salary. That salary is your compensation, and it should be booked as an expense in your accounts — regardless of whether the company is profitable.
With over 25 years in Dubai and nearly 30 years as a Chartered and Management Accountant, Hemant has extensive experience across manufacturing, services and technology sectors. He has worked with major corporate groups including Al Tayer, Saif Al Ghurair, Dhabi, and Aditya Birla. Hemant specializes in profitability and cost management, debt restructuring, contract management, and regulatory compliance, having generated approximately USD 47.5 million in savings and profit growth. A confident public speaker and Distinguished Communicator, he lives by the quote: “You get what you reward for. If you want ants to come, you put sugar on the floor” (Charlie Munger), embodying his belief that “Profit has its own intelligence.”
Archana Mundhra is a qualified Chartered Accountant with over 15 years of experience in multinational corporations. Her proficiency lies in financial planning and business intelligence. Her deep financial understanding and profound analytical skills empower her to assist management in realizing their objectives effectively.
Rinkle Jain is a qualified Chartered Accountant and Fellow Member of the Institute of Chartered Accountant of India. A results-driven Chartered Accountant with a distinguished career marked by proficiency in management, financial planning, and catalyzing overall company development.Demonstrates a unique blend of financial acumen, strategic insight, and leadership prowess, contributing significantly to organizational success.
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