Many dga's still pay themselves too low a salary - and that can have tax consequences
Plan your expenses and deductions strategically each year
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Maintain accurate and organized financial records for easy reporting
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Recent research by SEO Economic Research commissioned by the Ministry of Finance shows that director-major shareholders (dga's) structurally set their own salary too low. The Tax Authorities hardly check this, as a result of which the difference between the legally required salary and the actually paid out salary increases considerably.
Strategic behavior or fiscal ignorance?
Especially in the income segment up to €70,000, we see that director and principal shareholders deliberately (or out of ignorance) estimate their wages lower than permitted - sometimes up to €20,000 difference. At a total level, this means a wage bill that is about 20% lower than can be expected from a tax perspective. In 2023, that amounts to a missed amount of about €4.9 billion.
According to the report, there is so-called "strategic behavior": entrepreneurs who optimize their tax position to keep money in the business, or simply to avoid discussions with the Tax Administration. At the same time, it appears that the same Tax Office hardly actively enforces. Signals of a salary that is too low are not automatically picked up - unless the director and principal himself requests a deviation.
Little control, much room for interpretation
The tax authorities indicate that verification of the customary wage is "labor intensive. This creates room for entrepreneurs to test their own limits. Especially with smaller companies, it is tempting to keep the salary low - for example, to reduce costs, or in uncertain times. But the rules are clear.
A dga's customary salary must be at least equal to the higher of these three references:
- The salary of the highest paid employee within the company;
- A competitive salary for the position;
- Or the legal minimum of €56,000 (in 2025).
Avoid risk, choose certainty
Although there is limited enforcement now, the Internal Revenue Service can tighten this policy at any time. Anyone who stretches the rules now will soon run the risk of additional taxes, fines or legal discussions.
It is therefore important that you, as a director and principal shareholder, substantiate your own salary well and make it verifiable. Not only to operate safely from a fiscal point of view, but also to keep a grip on your business operations and private income.
Need help determining an appropriate dga salary?
At &advice, we guide shareholders and entrepreneurs in determining their customary wage correctly for tax purposes. No guesswork or gray areas, but well-founded advice based on current laws and regulations. In this way you avoid unpleasant surprises and are well prepared for possible audits by the tax authorities.
Contact us for a no-obligation consultation - and we'll make sure your salary structure stands like a house.
