United Arab Emirates Tax Agency Issues Clarification on Specified Terms Regarding Payments to Connected Persons

The Emirati Federal Tax Authority April 29 issued Public Clarification No. CTP010, in English and Arabic, clarifying the terms “director” and “officer” regarding payments to connected persons under the Corporate Tax Law. The clarification provides that: 1) payments to directors or officers are deductible only to the extent that they reflect market value and must be disclosed in tax returns if they exceed the applicable threshold; 2) directors are persons who serve on the board of directors or an equivalent governing body, including committee members; 3) officers are persons with the authority to plan, direct, and control a taxable person’s ...