Founder of a UAE mainland company, draw a monthly salary from the company. The question I keep getting different answers on: is my salary deductible at the company level for corporate tax (reducing the 9 percent base) or is it treated differently because I am both shareholder and employee.
One accountant said it is fully deductible if set up as a real employment relationship with WPS. One said it is deductible but capped at what a third party would pay for the same role (arm's length). One said it is treated as a distribution and not deductible at all.
Need a specialist to give me a written answer referenced to the current corporate tax rules, set up the salary mechanics consistent with whichever treatment is correct, and make sure the invoicing, WPS and bookkeeping all match the position.