Founder Salary Requirements in the Netherlands
(DGA “Gebruikelijk Loon” Guide)
July 17, 2025
Founder Salary Requirements in the Netherlands
(DGA “Gebruikelijk Loon” Guide)
1. Open a separate business account early
Choose a reputable bank and set it up as soon as you have a KVK registration. Use this account exclusively for business income and expenses.
Even freelancers benefit: it reduces confusion when preparing your VAT aangifte and ensures compliance with the Belastingdienst.
2. Use clear payment references
Use useful and specific descriptions for transfers:
"Salary – April 2025" instead of "Transfer"
"Invoice 302 – ABC Client" instead of "Payment"
"Reimbursement – June Marketing Lunch" for staff expenses
This assists your accountant, streamlines audits, and ensures transparent record-keeping.
3. Record every expense with proof
Every business-related payment should be meticulously matched to:
An invoice
A receipt
A reimbursement claim
Tip: The Belastingdienst requires supporting documentation for each input VAT claim. Store receipts digitally in organised folders or utilise tools like Basecone.
4. Keep your owner transactions clean
If you're paying yourself:
For BVs: Pay via salary (through payroll) or dividend.
For eenmanszaak: Transfer money as an "owner's draw" with a clear label.
Avoid vague, one-off transfers like "€1,000 – Savings." Such transactions muddy your records and complicate tax season.
5. Monitor regularly
Log in weekly to:
Reconcile new transactions
Flag any unclear transactions
Ensure invoices and receipts are properly linked
This habit saves significant time when preparing your VAT return or compiling financial statements.
Common Mistakes to Avoid
If you're a founder with shares in your own BV, understanding the Dutch gebruikelijk loon (“customary salary”) rules is essential. This guide walks you through what the tax authorities expect, from how to calculate your required salary to when exceptions apply for early-stage or low-profit startups. We also cover what evidence you’ll need, how to handle multi-founder setups, and what changes if you live outside the Netherlands. It’s a clear, practical reference to help you stay compliant without putting unnecessary pressure on your business.
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If you're a founder with shares in your own BV, understanding the Dutch gebruikelijk loon (“customary salary”) rules is essential. This guide walks you through what the tax authorities expect, from how to calculate your required salary to when exceptions apply for early-stage or low-profit startups. We also cover what evidence you’ll need, how to handle multi-founder setups, and what changes if you live outside the Netherlands. It’s a clear, practical reference to help you stay compliant without putting unnecessary pressure on your business.
What is the “Gebruikelijk Loon” Rule for DGA?
Under Article 12a of the Wage Tax Act 1964 (Wet op de Loonbelasting), if you own a significant share (≥5%) in a Dutch private limited company (BV) and work for that company (making you a DGA), you are required to take a normal market-based salary for your role.
This is known as the gebruikelijkloonregeling, or customary salary rule. The rule was created to prevent founders from avoiding income tax by paying themselves a very low salary and taking profits out as dividends.
In short, the tax authority (Belastingdienst) will treat you as having earned a certain minimum salary, even if you paid yourself less.
Key points about DGA status:
DGA (Director-Major Shareholder):
Typically a founder who owns at least 5% of the BV’s shares (aanmerkelijk belang) and works in the company. As a DGA you are an employee of your BV, and the BV must withhold payroll taxes on your salary business.gov.nl.
Customary Salary Obligation:
As a DGA, you are deemed to receive a salary “normal for the level and duration” of your work belastingdienst.nl. You cannot set your salary arbitrarily low or zero (regardless of your nationality or whether you’re also a shareholder). The law expects your compensation to mirror what an unrelated employer would pay for similar work.
How to Determine the Required Salary (Three Benchmarks)
The gebruikelijk loon rule specifies three benchmarks to ensure your salary is “usual” for your role. You must set your DGA salary at the highest of the following three amounts:
Market Comparable Salary: 100% of the salary that would be normal for a similar position at a comparable company (i.e. what an unrelated employer would pay someone with your duties) In practice, you need to research what a realistic salary is for your role and industry (taking into account the company size, your responsibilities, experience, and hours worked).
Highest Employee’s Salary: The highest salary paid to any other employee of your company (or any affiliated company). You cannot pay yourself less than what you pay your top-paid staff. For example, if your BV has a senior developer earning €70,000, you as founder should earn at least €70,000 (assuming your role is of equal or greater value to the company).
Statutory Minimum Amount: The fixed minimum floor of €56,000 (for 2024 & 2025). Even if the above two comparisons would suggest a lower figure, you must still pay at least €56k, since the law sets this as an absolute minimum for a full-time DGA.
In summary, calculate all three benchmarks and use the highest as your required salary. For most early-stage startups with no other employees, the €56k floor often becomes the binding number by default. However, if the market rate for your role is higher than €56k or you have employees earning more than €56k, you must set your salary even higher accordingly.
Exceptions: When Can a Founder Take a Lower Salary?
Recognising that startups or struggling businesses might not always afford a full €56k+ salary, the law and the tax authorities allow limited exceptions, but only with strong justification and often formal approval. Here are key scenarios and conditions under which a reduced DGA salary may be allowed:
Market Evidence of Lower Pay: If you can prove that a normal, unrelated employee in a comparable job would earn less than the usual benchmarks, you can potentially use that lower amount as your salary
The burden of proof is on you to demonstrate this with credible data (e.g. industry salary surveys, job listings, or documentation of wages for similar-sized companies where the person has no shareholding) download.belastingdienst.nl. You must make a like to like comparison: factors like the nature of the work, company size, complexity, your experience, hours, and responsibilities will be considered in judging if the comparison is valid.
Financial Hardship / Low Profit: If paying the full customary salary would endanger the company’s survival, a lower salary may be considered acceptable. The Dutch tax authorities acknowledge that “the customary wage should not sink a BV”.
This is not an automatic exemption, and typically it comes up in disputes/audits or via a ruling. If your startup is genuinely loss-making or has very limited cash, you can argue for a temporary lower salary to keep the company afloat. You should be prepared to show financial statements, cash flow forecasts, or other evidence that a €56k payout is not feasible without jeopardising operations.. Often, the tax office might still expect you to take something (whatever the company can reasonably bear) rather than zero.
Part-Time or Limited Role: If you truly work part-time or have a very limited role in the business, a proportionately lower salary might be warranted. The law’s wording is a wage normal for “the level and duration of the work” , meaning if you only work, say, one day a week for the BV, the customary salary could be pro-rated (e.g., roughly 20% of the full-time norm). However, claiming a part-time exception requires convincing evidence. In practice, many founders who attempt to halve their salary because they “work half-time” still get challenged, you must demonstrate that your involvement and responsibilities are genuinely limited.
De Minimis Exception (€5,000 rule): There is a small exception for very tiny engagements. If the calculated “normal” salary for your work would be €5,000 per year or less, and you can demonstrate that, then you are allowed to simply report whatever you actually paid yourself
In other words, if your involvement in all your substantial-interest companies combined is so minimal that it would only justify a token salary (≤ €5k total), you don’t have to impute a higher wage. This is meant for scenarios like holding companies or side businesses where you barely work.
The €5k limit is an aggregate across all companies where you or your partner have a ≥5% share, you can’t pay yourself €5k from two different BVs and claim each is under the threshold.
Important:
None of these exceptions mean you can just decide on a lower salary unilaterally. In most cases, you must notify or get approval from the Belastingdienst to ensure they accept the lower amount.
The tax authority can and does audit DGA salaries. A 2025 government report found that around 40% of DGA’s were reporting salaries below the norm amount, especially among new and part-time entrepreneurs, often without advance agreement. This has prompted plans for stricter enforcement in 2025 and beyond . So, if you choose a reduced salary, be prepared to defend it. It’s advisable to proactively engage with the tax office (see next section) rather than risk a surprise correction and tax bill later (which can include back taxes and interest/penalties).
Multi-Founders & DGA Salary Rules
If your BV has multiple founders, each founder who works in the business and holds at least 5% shares is individually subject to the Dutch "customary salary" rule there’s no splitting the minimum between co-founders. In general, each active founder should earn at least the standard minimum (€56k in 2024), though lower salaries may be justified if a founder works part-time or in a different role (e.g. advisor vs. full-time CEO). Passive founders not involved in daily operations are typically exempt. To avoid issues, it's best to clearly define each founder’s role, hours, and salary in a signed employment contract—and when in doubt, consult the tax authority for clarity.
Following this guide and checklist will help you navigate the Dutch founder salary requirements confidently. By understanding the gebruikelijk loon rules and planning accordingly, you can stay compliant with Dutch tax law while balancing your startup’s financial constraints. Always keep communication open with your tax advisor or the Belastingdienst when in doubt, it’s easier to prevent issues up front than to fix them later. Good luck with your startup, and pay yourself gebruikelijk!
What is the “Gebruikelijk Loon” Rule for DGA?
Under Article 12a of the Wage Tax Act 1964 (Wet op de Loonbelasting), if you own a significant share (≥5%) in a Dutch private limited company (BV) and work for that company (making you a DGA), you are required to take a normal market-based salary for your role.
This is known as the gebruikelijkloonregeling, or customary salary rule. The rule was created to prevent founders from avoiding income tax by paying themselves a very low salary and taking profits out as dividends.
In short, the tax authority (Belastingdienst) will treat you as having earned a certain minimum salary, even if you paid yourself less.
Key points about DGA status:
DGA (Director-Major Shareholder):
Typically a founder who owns at least 5% of the BV’s shares (aanmerkelijk belang) and works in the company. As a DGA you are an employee of your BV, and the BV must withhold payroll taxes on your salary business.gov.nl.
Customary Salary Obligation:
As a DGA, you are deemed to receive a salary “normal for the level and duration” of your work belastingdienst.nl. You cannot set your salary arbitrarily low or zero (regardless of your nationality or whether you’re also a shareholder). The law expects your compensation to mirror what an unrelated employer would pay for similar work.
How to Determine the Required Salary (Three Benchmarks)
The gebruikelijk loon rule specifies three benchmarks to ensure your salary is “usual” for your role. You must set your DGA salary at the highest of the following three amounts :
Market Comparable Salary: 100% of the salary that would be normal for a similar position at a comparable company (i.e. what an unrelated employer would pay someone with your duties). In practice, you need to research what a realistic salary is for your role and industry (taking into account the company size, your responsibilities, experience, and hours worked).
Highest Employee’s Salary: The highest salary paid to any other employee of your company (or any affiliated company) You cannot pay yourself less than what you pay your top-paid staff. For example, if your BV has a senior developer earning €70,000, you as founder should earn at least €70,000 (assuming your role is of equal or greater value to the company).
Statutory Minimum Amount: The fixed minimum floor of €56,000 (for 2024 & 2025)Even if the above two comparisons would suggest a lower figure, you must still pay at least €56k, since the law sets this as an absolute minimum for a full-time DGA.
In summary, calculate all three benchmarks and use the highest as your required salary. For most early-stage startups with no other employees, the €56k floor often becomes the binding number by default. However, if the market rate for your role is higher than €56k or you have employees earning more than €56k, you must set your salary even higher accordingly
Exceptions: When Can a Founder Take a Lower Salary?
Recognising that startups or struggling businesses might not always afford a full €56k+ salary, the law and the tax authorities allow limited exceptions, but only with strong justification and often formal approval. Here are key scenarios and conditions under which a reduced DGA salary may be allowed:
Market Evidence of Lower Pay: If you can prove that a normal, unrelated employee in a comparable job would earn less than the usual benchmarks, you can potentially use that lower amount as your salary
The burden of proof is on you to demonstrate this with credible data (e.g. industry salary surveys, job listings, or documentation of wages for similar-sized companies where the person has no shareholding) download.belastingdienst.nl. You must make a like to like comparison: factors like the nature of the work, company size, complexity, your experience, hours, and responsibilities will be considered in judging if the comparison is valid.
Financial Hardship / Low Profit: If paying the full customary salary would endanger the company’s survival, a lower salary may be considered acceptable. The Dutch tax authorities acknowledge that “the customary wage should not sink a BV”.
This is not an automatic exemption, and typically it comes up in disputes/audits or via a ruling. If your startup is genuinely loss-making or has very limited cash, you can argue for a temporary lower salary to keep the company afloat. You should be prepared to show financial statements, cash flow forecasts, or other evidence that a €56k payout is not feasible without jeopardising operations.. Often, the tax office might still expect you to take something (whatever the company can reasonably bear) rather than zero.
Part-Time or Limited Role: If you truly work part-time or have a very limited role in the business, a proportionately lower salary might be warranted. The law’s wording is a wage normal for “the level and duration of the work”, meaning if you only work, say, one day a week for the BV, the customary salary could be pro-rated (e.g., roughly 20% of the full-time norm). However, claiming a part-time exception requires convincing evidence. In practice, many founders who attempt to halve their salary because they “work half-time” still get challenged, you must demonstrate that your involvement and responsibilities are genuinely limited.
De Minimis Exception (€5,000 rule): There is a small exception for very tiny engagements. If the calculated “normal” salary for your work would be €5,000 per year or less, and you can demonstrate that, then you are allowed to simply report whatever you actually paid yourself
In other words, if your involvement in all your substantial-interest companies combined is so minimal that it would only justify a token salary (≤ €5k total), you don’t have to impute a higher wage. This is meant for scenarios like holding companies or side businesses where you barely work.
The €5k limit is an aggregate across all companies where you or your partner have a ≥5% share b you can’t pay yourself €5k from two different BVs and claim each is under the threshold.
Important:
None of these exceptions mean you can just decide on a lower salary unilaterally. In most cases, you must notify or get approval from the Belastingdienst to ensure they accept the lower amount.
The tax authority can and does audit DGA salaries. A 2025 government report found that around 40% of DGA’s were reporting salaries below the norm amount, especially among new and part-time entrepreneurs, often without advance agreement. This has prompted plans for stricter enforcement in 2025 and beyond . So, if you choose a reduced salary, be prepared to defend it. It’s advisable to proactively engage with the tax office (see next section) rather than risk a surprise correction and tax bill later (which can include back taxes and interest/penalties).
Multi-Founders & DGA Salary Rules
If your BV has multiple founders, each founder who works in the business and holds at least 5% shares is individually subject to the Dutch "customary salary" rule there’s no splitting the minimum between co-founders. In general, each active founder should earn at least the standard minimum (€56k in 2024), though lower salaries may be justified if a founder works part-time or in a different role (e.g. advisor vs. full-time CEO). Passive founders not involved in daily operations are typically exempt. To avoid issues, it's best to clearly define each founder’s role, hours, and salary in a signed employment contract—and when in doubt, consult the tax authority for clarity.
Following this guide and checklist will help you navigate the Dutch founder salary requirements confidently. By understanding the gebruikelijk loon rules and planning accordingly, you can stay compliant with Dutch tax law while balancing your startup’s financial constraints. Always keep communication open with your tax advisor or the Belastingdienst when in doubt, it’s easier to prevent issues up front than to fix them later. Good luck with your startup, and pay yourself gebruikelijk!
Key points about DGA status:
DGA (Director-Major Shareholder):
Typically a founder who owns at least 5% of the BV’s shares (aanmerkelijk belang) and works in the company. As a DGA you are an employee of your BV, and the BV must withhold payroll taxes on your salary business.gov.nl.
Customary Salary Obligation:
As a DGA, you are deemed to receive a salary “normal for the level and duration” of your work belastingdienst.nl. You cannot set your salary arbitrarily low or zero (regardless of your nationality or whether you’re also a shareholder). The law expects your compensation to mirror what an unrelated employer would pay for similar work.
Key points about DGA status:
DGA (Director-Major Shareholder):
Typically a founder who owns at least 5% of the BV’s shares (aanmerkelijk belang) and works in the company. As a DGA you are an employee of your BV, and the BV must withhold payroll taxes on your salary business.gov.nl.
Customary Salary Obligation:
As a DGA, you are deemed to receive a salary “normal for the level and duration” of your work belastingdienst.nl. You cannot set your salary arbitrarily low or zero (regardless of your nationality or whether you’re also a shareholder). The law expects your compensation to mirror what an unrelated employer would pay for similar work.
Accounting That Accelerates Startups.
Accounting That Accelerates Startups.
Following this guide and checklist will help you navigate the Dutch founder salary requirements confidently. By understanding the gebruikelijk loon rules and planning accordingly, you can stay compliant with Dutch tax law while balancing your startup’s financial constraints. Always keep communication open with your tax advisor or the Belastingdienst when in doubt, it’s easier to prevent issues up front than to fix them later. Good luck with your startup, and pay yourself gebruikelijk!
Justifying a Lower Salary
If you believe a lower-than-standard salary is justified (due to the conditions above), you should collect strong evidence and consider reaching out to the tax authority. Make sure to document everything thoroughly: your role, responsibilities, working hours, comparable salary data, and financial arguments, so you can justify a lower salary if needed and avoid issues with the tax authority.
Description of your role and duties: Detail the nature of the work you (and/or your co-founder) perform for the company, and the extent (hours per week, responsibilities). Be specific about tasks and level of responsibility (e.g. “software developer and CEO tasks for a SaaS startup, ~50 hours/week, making all executive decisions, plus coding” or conversely if limited, explain what you do).
This establishes the basis for finding a comparable job
Comparable salary data: Provide information on salaries for comparable positions in companies where the person is not a shareholder.This might include: job postings, industry salary benchmarks, or actual salaries of similar roles in other firms.
Financial situation and arguments for lower salary: Explain why you propose a lower salary. This is where you include evidence of financial need or other circumstances. For example, you might include recent financial statements showing losses or minimal revenue, cash flow projections, or a statement like “Paying €56k would consume 80% of our current funding and leave the company unable to cover other expenses.” If the company is in a startup phase, mention that and any relevant details (e.g. bootstrapped vs. funded, current burn rate, etc.). Essentially, you need to make a business case that the usual salary is not “reasonable” right now. This could also include noting if you work part-time or have multiple founders splitting duties, etc - anything that supports why a lower amount is fair for now.
How to Determine the Required Salary (Three Benchmarks)
The gebruikelijk loon rule specifies three benchmarks to ensure your salary is “usual” for your role. You must set your DGA salary at the highest of the following three amounts :
Market Comparable Salary: 100% of the salary that would be normal for a similar position at a comparable company (i.e. what an unrelated employer would pay someone with your duties). In practice, you need to research what a realistic salary is for your role and industry (taking into account the company size, your responsibilities, experience, and hours worked).
Highest Employee’s Salary: The highest salary paid to any other employee of your company (or any affiliated company) You cannot pay yourself less than what you pay your top-paid staff. For example, if your BV has a senior developer earning €70,000, you as founder should earn at least €70,000 (assuming your role is of equal or greater value to the company).
Statutory Minimum Amount: The fixed minimum floor of €56,000 (for 2024 & 2025)Even if the above two comparisons would suggest a lower figure, you must still pay at least €56k, since the law sets this as an absolute minimum for a full-time DGA.
In summary, calculate all three benchmarks and use the highest as your required salary. For most early-stage startups with no other employees, the €56k floor often becomes the binding number by default. However, if the market rate for your role is higher than €56k or you have employees earning more than €56k, you must set your salary even higher accordingly
Exceptions: When Can a Founder Take a Lower Salary?
Recognising that startups or struggling businesses might not always afford a full €56k+ salary, the law and the tax authorities allow limited exceptions, but only with strong justification and often formal approval. Here are key scenarios and conditions under which a reduced DGA salary may be allowed:
Market Evidence of Lower Pay: If you can prove that a normal, unrelated employee in a comparable job would earn less than the usual benchmarks, you can potentially use that lower amount as your salary
The burden of proof is on you to demonstrate this with credible data (e.g. industry salary surveys, job listings, or documentation of wages for similar-sized companies where the person has no shareholding) download.belastingdienst.nl. You must make a like to like comparison: factors like the nature of the work, company size, complexity, your experience, hours, and responsibilities will be considered in judging if the comparison is valid.
Financial Hardship / Low Profit: If paying the full customary salary would endanger the company’s survival, a lower salary may be considered acceptable. The Dutch tax authorities acknowledge that “the customary wage should not sink a BV”.
This is not an automatic exemption, and typically it comes up in disputes/audits or via a ruling. If your startup is genuinely loss-making or has very limited cash, you can argue for a temporary lower salary to keep the company afloat. You should be prepared to show financial statements, cash flow forecasts, or other evidence that a €56k payout is not feasible without jeopardising operations.. Often, the tax office might still expect you to take something (whatever the company can reasonably bear) rather than zero.
Part-Time or Limited Role: If you truly work part-time or have a very limited role in the business, a proportionately lower salary might be warranted. The law’s wording is a wage normal for “the level and duration of the work”, meaning if you only work, say, one day a week for the BV, the customary salary could be pro-rated (e.g., roughly 20% of the full-time norm). However, claiming a part-time exception requires convincing evidence. In practice, many founders who attempt to halve their salary because they “work half-time” still get challenged, you must demonstrate that your involvement and responsibilities are genuinely limited.
De Minimis Exception (€5,000 rule): There is a small exception for very tiny engagements. If the calculated “normal” salary for your work would be €5,000 per year or less, and you can demonstrate that, then you are allowed to simply report whatever you actually paid yourself
In other words, if your involvement in all your substantial-interest companies combined is so minimal that it would only justify a token salary (≤ €5k total), you don’t have to impute a higher wage. This is meant for scenarios like holding companies or side businesses where you barely work.
The €5k limit is an aggregate across all companies where you or your partner have a ≥5% share b you can’t pay yourself €5k from two different BVs and claim each is under the threshold.
Important:
None of these exceptions mean you can just decide on a lower salary unilaterally. In most cases, you must notify or get approval from the Belastingdienst to ensure they accept the lower amount.
The tax authority can and does audit DGA salaries. A 2025 government report found that around 40% of DGA’s were reporting salaries below the norm amount, especially among new and part-time entrepreneurs, often without advance agreement. This has prompted plans for stricter enforcement in 2025 and beyond . So, if you choose a reduced salary, be prepared to defend it. It’s advisable to proactively engage with the tax office (see next section) rather than risk a surprise correction and tax bill later (which can include back taxes and interest/penalties).
Justifying a Lower Salary
If you believe a lower-than-standard salary is justified (due to the conditions above), you should collect strong evidence and consider reaching out to the tax authority. Make sure to document everything thoroughly: your role, responsibilities, working hours, comparable salary data, and financial arguments, so you can justify a lower salary if needed and avoid issues with the tax authority.
Description of your role and duties: Detail the nature of the work you (and/or your co-founder) perform for the company, and the extent (hours per week, responsibilities). Be specific about tasks and level of responsibility (e.g. “software developer and CEO tasks for a SaaS startup, ~50 hours/week, making all executive decisions, plus coding” or conversely if limited, explain what you do).
This establishes the basis for finding a comparable job
Comparable salary data: Provide information on salaries for comparable positions in companies where the person is not a shareholder.This might include: job postings, industry salary benchmarks, or actual salaries of similar roles in other firms.
Financial situation and arguments for lower salary: Explain why you propose a lower salary. This is where you include evidence of financial need or other circumstances. For example, you might include recent financial statements showing losses or minimal revenue, cash flow projections, or a statement like “Paying €56k would consume 80% of our current funding and leave the company unable to cover other expenses.” If the company is in a startup phase, mention that and any relevant details (e.g. bootstrapped vs. funded, current burn rate, etc.). Essentially, you need to make a business case that the usual salary is not “reasonable” right now. This could also include noting if you work part-time or have multiple founders splitting duties, etc - anything that supports why a lower amount is fair for now.
Multi-Founders & DGA Salary Rules
If your BV has multiple founders, each founder who works in the business and holds at least 5% shares is individually subject to the Dutch "customary salary" rule there’s no splitting the minimum between co-founders. In general, each active founder should earn at least the standard minimum (€56k in 2024), though lower salaries may be justified if a founder works part-time or in a different role (e.g. advisor vs. full-time CEO). Passive founders not involved in daily operations are typically exempt. To avoid issues, it's best to clearly define each founder’s role, hours, and salary in a signed employment contract—and when in doubt, consult the tax authority for clarity.
Following this guide and checklist will help you navigate the Dutch founder salary requirements confidently. By understanding the gebruikelijk loon rules and planning accordingly, you can stay compliant with Dutch tax law while balancing your startup’s financial constraints. Always keep communication open with your tax advisor or the Belastingdienst when in doubt, it’s easier to prevent issues up front than to fix them later. Good luck with your startup, and pay yourself gebruikelijk!
What is the “Gebruikelijk Loon” Rule for DGA?
Under Article 12a of the Wage Tax Act 1964 (Wet op de Loonbelasting), if you own a significant share (≥5%) in a Dutch private limited company (BV) and work for that company (making you a DGA), you are required to take a normal market-based salary for your role.
This is known as the gebruikelijkloonregeling, or customary salary rule. The rule was created to prevent founders from avoiding income tax by paying themselves a very low salary and taking profits out as dividends.
In short, the tax authority (Belastingdienst) will treat you as having earned a certain minimum salary, even if you paid yourself less.
What is the “Gebruikelijk Loon” Rule for DGA?
Under Article 12a of the Wage Tax Act 1964 (Wet op de Loonbelasting), if you own a significant share (≥5%) in a Dutch private limited company (BV) and work for that company (making you a DGA), you are required to take a normal market-based salary for your role.
This is known as the gebruikelijkloonregeling, or customary salary rule. The rule was created to prevent founders from avoiding income tax by paying themselves a very low salary and taking profits out as dividends.
In short, the tax authority (Belastingdienst) will treat you as having earned a certain minimum salary, even if you paid yourself less.
Justifying a Lower Salary
If you believe a lower-than-standard salary is justified (due to the conditions above), you should collect strong evidence and consider reaching out to the tax authority. Make sure to document everything thoroughly: your role, responsibilities, working hours, comparable salary data, and financial arguments, so you can justify a lower salary if needed and avoid issues with the tax authority.
Description of your role and duties: Detail the nature of the work you (and/or your co-founder) perform for the company, and the extent (hours per week, responsibilities). Be specific about tasks and level of responsibility (e.g. “software developer and CEO tasks for a SaaS startup, ~50 hours/week, making all executive decisions, plus coding” or conversely if limited, explain what you do).
This establishes the basis for finding a comparable job
Comparable salary data: Provide information on salaries for comparable positions in companies where the person is not a shareholder.This might include: job postings, industry salary benchmarks, or actual salaries of similar roles in other firms.
Financial situation and arguments for lower salary: Explain why you propose a lower salary. This is where you include evidence of financial need or other circumstances. For example, you might include recent financial statements showing losses or minimal revenue, cash flow projections, or a statement like “Paying €56k would consume 80% of our current funding and leave the company unable to cover other expenses.” If the company is in a startup phase, mention that and any relevant details (e.g. bootstrapped vs. funded, current burn rate, etc.). Essentially, you need to make a business case that the usual salary is not “reasonable” right now. This could also include noting if you work part-time or have multiple founders splitting duties, etc - anything that supports why a lower amount is fair for now.
