Minimum wage director
Compulsory salary director / director English Limited with registration in the Netherlands
If you are a director and also a shareholder of an English Limited (more than 5% shareholder), you must receive at least a gross salary from the Limited of at least 42,000 euros (Article 12a of the LB Act). This salary applies if you work full-time for the Limited. For example, if you work for the BV only 20 hours a week, you can halve the salary. It is advisable to short-circuit this in advance with the tax authorities. If desired, we can take care of this process for you.
If it is customary in your industry to receive a higher salary than EUR 42,000 gross, then what is usual applies. Suppose that a comparable person with the same position and who is not a shareholder earns a salary of 60,000 euros, then you must receive the same salary and not the prescribed 42,000 euros. You should also pay attention that you should not earn less than your employees.
Another important point of attention is the national insurance contributions. If you have more than 50% of the shares / voting rights in the Limited, you do not have to pay national insurance contributions on your salary. If this is less, the premiums are due. The reason for this is that if you have more than 50% of the shares / voting rights, there is no authority relationship with the Limited, and you can, for example, stop a dismissal or suspension yourself. In the case of a minority interest (less than 50%), this is not possible, and there is a relationship of authority, and therefore a payment of national insurance contributions.
In the above, the starting point is that the English Limited is registered in the Netherlands (Chamber of Commerce and Tax Authorities) and is therefore actually located in the Netherlands. Therefore, no minimum salary requirement applies from England.
If you would like to know more about this, please contact us.