3 ms·
In my last +10m startup I received a management fee of 6000 euro's a month. It was considered by all investors as a normal salary. Yet it was the lowest in the
by holoduke 5y ago
In my last +10m startup I received a management fee of 6000 euro's a month. It was considered by all investors as a normal salary. Yet it was the lowest in the company. And of course the tax authority asked us questions about it. Afraid that I would lower my salary to a minimum and receive high dividends.
I am located in the Netherlands.
- milansm 5y agoIs lowering the salary and receive high dividends illegal in Holland?
- ricardobeat 5y ago(Disclaimer: not a founder or tax expert here) There are a bunch of rules, all aiming at making sure as a company director you can’t qualify for any government benefits, and income is taxed in box 1 (income from employment) which has the highest rate. First is a minimum of €45k, then you can’t be paid less than your highest paid employee, for an LLC you need to pay yourself at least 75% of profits. There’s probably more to stop creative accounting and ensure the first chunk of money is always taxed as personal income.