Should you pull up the remuneration of the manager/director to €45.000. 

There is a lot of discussion whether or not it is a good idea to increase the salary of the manager to at least €45,000. According to the new legislation non-compliance will lead to a tax penalty.

If the salary is insufficient for the reduced rate, then the company will not be able to apply the reduced rate in corporate income tax. In addition, there will be an additional special tax of 5% in 2018 and 2019 (10% from 2020) on the difference between the threshold of €45,000 and the effective granted remuneration. This additional special tax is deductible.

But is it necessary to lift the remuneration up to €45,000? This depends on several factors. The Bibf has made a nice piece that  we do not want to withhold (in Dutch).

Would you like to see the calculations be applied to your file, please reach out to your file manager.

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