Record connected persons and their pay

Steps

1. 1

   Open Tax Intelligence and select More

   In the left menu choose Tax Intelligence, then select More in the row of groups. All tax tools lists the specialist screens that are not in the left menu, in four groups: Corporate tax structure, Elections and opening balances, Filing, corrections and sign-off, and Data and learning.

   • Select More
2. 2

   Select Connected Persons

   Select Connected Persons. A connected person is someone close to the business: an owner, a director, an officer, or a relative of one. The law lets the entity deduct what it pays them only up to the market rate for the work, so each one is recorded here with a benchmark. The list is empty to begin with.

3. 3

   Select Add Person

   Select Add Person at the top right. The Add Connected Person form opens.

   • Select Add Person
4. 4

   Type the name and choose the relationship

   In Person Name, type the name exactly as it appears as the supplier on the payments. In Relationship Type choose how the person is connected to the entity: Owner, Director, Officer or Relative. Saeed Al Marri is the managing director, so choose Director.

   • Type e.g. John Smith: Saeed Al Marri
   • Select Select relationship...
   • Choose Director
5. 5

   Enter the yearly pay and the market benchmark

   In Annual Compensation, type everything the entity pays the person in a year, in dirhams: 780000. In Market Rate Benchmark, type what an unconnected person would be paid for the same job: 600000. Both boxes are required.

   • Type e.g. 600000: 780000
   • Type e.g. 450000: 600000
6. 6

   Give the source of the benchmark and the year

   In Benchmark Source, say where the benchmark comes from, so you can show it in an audit. It is optional, but a benchmark with no source is hard to defend. Fiscal Year is filled with the current year; change it to the year the pay belongs to, here 2025.

   • Type e.g. Mercer UAE Salary Survey 2025: Retail sector executive pay survey 2025, managing director band
7. 7

   Add a note and select Add Connected Person

   Notes is optional. Use it for anything a reviewer should know, such as the board approval. Then select Add Connected Person. The form closes and the person is added to the list.

   • Type Additional notes...: Remuneration approved by the board on 12 February 2025.
   • Select Add Connected Person

   

8. 8

   Read the excess in the list

   The row shows the relationship, the yearly pay, the benchmark and, in red, the Excess, which is not deductible: 180,000 dirhams. The year and the status Active follow. The corporate tax return for 2025 will disallow that excess.

9. 9

   Select the eye to view the full record

   Three buttons end the row. Select the eye, View full detail. A window shows the record in full, including the benchmark source and the date it was added. Select Close when you have read it.

   • Select View full detail
10. 10

    Close the detail and select the pencil

    Select Close, then select the pencil, Edit compensation and benchmark. The same boxes open for correction, with a tick box called Active. Clear Active when a person stops being connected, instead of deleting the history.

    • Select Close
    • Select Edit compensation and benchmark
11. 11

    Correct the note and select Save Changes

    Changing the pay or the benchmark works the excess out again. Here only the note needs more detail. Add the reference of the board minute, then select Save Changes.

    • Type Notes (optional): Remuneration approved by the board on 12 February 2025. Board minute r…
    • Select Save Changes
12. 12

    Add a second person to practise deleting

    Select Add Person again and record Huda Al Marri as a Relative, with pay of 96000 and a benchmark of 96000 for 2025, then select Add Connected Person. Her pay equals the benchmark, so her excess is zero.

    • Select Add Person
    • Type e.g. John Smith: Huda Al Marri
    • Select Select relationship...
    • Choose Relative
    • Type e.g. 600000: 96000
    • Type e.g. 450000: 96000
    • Select Add Connected Person
13. 13

    Select the bin on her row

    Suppose that record was entered by mistake. Select the bin, Delete, at the end of Huda Al Marri's row. A window asks you to confirm and warns that the compensation and benchmark record is removed and cannot be restored.

    • Select Delete
14. 14

    Select Delete to confirm

    Select Delete in the window. The record is removed and only Saeed Al Marri remains. If you opened the window by mistake, Cancel leaves the record as it was.

    • Select Delete