Family, salary and benefits

Can I pay my spouse or a relative a salary from the company?

Often questioned by the tax authority: take care

In short: Generally yes, but only if they really work for the business and the pay matches what that work is worth on the market. A salary with no real work behind it does not count as a business cost.

The basic rule

Payments to a close person (official term: Connected Person: the owner, a director, or their relatives up to the fourth degree) count only up to the market value of the work done, and only if they are purely for the business.

When it is different

Real role, real hours, market pay: deductible like any salary.
Pay above market value: only the market-value part is deductible.
Family travel, cars or housing given to relatives who do not work in the business are personal benefits, not business costs.
Family members who are employees follow the same visa, labour and payroll rules as other staff.

Documents to keep

Employment contract and job description
Payroll records and bank transfers
Evidence of work done (emails, timesheets, deliverables)
A note on how the pay compares with the market

How safe is it?

Often questioned by the tax authority: take care High: relatives on the payroll are a well-known audit area.

When to ask a professional

Have the pay level and the documents confirmed before you start paying a relative. Who can confirm it for your own case: an FTA-registered tax agent (a tax professional approved by the UAE tax authority), or the optional year-end review in SoloBooks.

If you pay no Corporate Tax this year (Small Business Relief): If you use Small Business Relief this year, you pay no Corporate Tax anyway, so this cost does not change your tax for that year. Keep the documents anyway: they back up your income figure, and they matter if you stop qualifying later.

Check it with the free calculator: Small Business Relief calculator →

Sources

Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (consolidated, unofficial English translation) — Art. 35(1)(a), 36(1)–(2), 34
FTA Corporate Tax Guide: Determination of Taxable Income (CTGDTI1) — Payments to Connected Persons

Last verified: 19 October 2026

General information, not tax advice. Your situation may differ.

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