As explained, the Dutch Belastingdienst wanted to prevent tax inequality. Of course they didn’t want to miss out on the higher income tax rate, too. By just saying that an amount of money was dividend instead of salary, a DMS could in theory get around his income tax bill. With this in mind, the belastingdienst came up with the ‘customary salary scheme’ (gebruikelijkloonregeling). As it is hard to establish different customary salaries for each individual case, one fixed amount was chosen as a “rule of fist”. This amount is €46.000. However, if the Belastingdienst is made to understand that you’re not able to pay yourself a salary of €46.000 - or any amount for that matter - you will not be held to this rule. After all, you can’t get blood out of a stone.
How to bypass the DMS salary
This is the easiest option. Your BV opts for a withholding agent status and submits a “zero return” for payroll taxes every month. At the end of the calendar year you check whether you have the financial leeway to pay a small amount of salary, and you pay tax over this amount... For example, imagine that you have € 40.000 on your BV’s bank account in mid December. You reserve an amount of € 20.000 for building a new website. The rest can be paid out as salary. This does not reach the rule-of-fist amount, but is totally acceptable to the Belastingdienst. We regularly arrange this for our customers.
You can also send a request to the Belastingdienst, containing a prognosis of the first period of the year which shows that there is not enough cash flow to meet the minimum DGA salary. The Belastingdienst hardly approves this anymore and states that a minimum salary must always be paid. This is why we don’t advise this option anymore.
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What NOT to do
Do not pay yourself dividends before you pay yourself the salary of €46.000. The Belastingdienst is very focused on these practices and will definitely notice.
Do not let your BV lend you (as a DMS) a significant amount of money. The belastingdienst believes that doing so implies there is also enough cash flow to pay the DMS salary.
It’s not that hard to get past the mandatory DMS salary, as long as you have an explanation which you can substantiate with facts and data. Still in doubt or in need of any advice? Please don’t hesitate to fill out our contact form or give us a call at 020-3080675. Good advice is just one click or a phone call away.
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