When you’re a partner in a UAE company and hold an investor visa, withdrawing money from the business works differently compared to employees on an employment visa. You are not required to be on the company payroll — but that doesn’t mean you can withdraw funds in any way without thinking about compliance and tax implications.
Below, we break down the three main ways partners can take money out of their company and how each affects UAE corporate tax.
1. Salary
Although partners on investor visas are not employees and are not required to take a salary, they can choose to do so if they wish:
- This requires creating an employment contract and registering it with the Ministry of Human Resources and Emiratisation (MOHRE) and processing payment through the Wage Protection System (WPS).
- Salaries are generally deductible for corporate tax purposes, provided they are reasonable and reflect actual work performed.
- Comes with additional administrative steps, which many investor visa partners prefer to avoid.
2. Drawings
Partners can withdraw profits as drawings — essentially taking money from their share of the company’s profit.
- Simple to do, no payroll or WPS needed.
- However, drawings are not a deductible expense for corporate tax. They do not reduce taxable profit, which means your company’s corporate tax liability remains the same.
- Suitable when revenue level is below the Small Business Relief threshold or when tax reduction is not a priority.
3. Management Fee
For investor visa holders who actively manage the business but don’t want payroll formalities, the UAE Commercial Companies Law allows payment of a management fee:
- This is compensation for managing the company, authorised in the MOA or by a partner resolution.
- Treated as a business expense, which can reduce taxable income and lower corporate tax payable.
- More flexible than salary while still providing a tax planning advantage over drawings.
Choosing the Right Method
Your choice affects:
- Compliance with UAE labour and company law
- Corporate tax planning and ability to reduce taxable income
- Cash flow for both the business and partners
At Finzoryx, we help UAE partners — especially those on investor visas — withdraw funds in a way that delivers clarity on options, ensures compliance with all laws, and gives the confidence that your decision supports your corporate tax planning.
📩 Email connect@finzoryx.com or call 0503978121