What with your salary if you are a business leader in two companies?

There is such thing called the ‘ fine ‘ on wage deficit (5.1%), this appears if the company does not meet the minimum remuneration of €45,000, or at least the taxable profit as a remuneration to the business leader if this is lower than €45,000.

If you are the manager of two or more (connected) companies then there is a special arrangement. According to this scheme, a total remuneration of €75,000, instead of the number of companies multiplied by €45,000, is sufficiënt.

Imagine you are a manager in two connected companies. In one company you have a remuneration, in the other you don’t. In this case, it is not always wise to have a salary in both companies (and thus avoid the fine) as this can result in a higher income tax. It might increase the persons taxes is greater amount than avoiding the fine.

An illustrative example:

You are a manager in two companies, a bvba and a nv. From the bvba you retrieve a wage of €55,000, from the nv for the time being, nothing. Set the nv has a taxable profit of €100,000. To meet the requirements you would also have to pay a wage of at least €20,000 to avoid the fine. However the fine only is €1,020 (5.1% of 20.000) while the increase in personal tax amounts to €10,800.

Source: Tipsenadvies-belastingen.be (2018)

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