Salary from holding or operating company as a DGA?

Employed by the holding

Employing yourself through your own holding is common among entrepreneurs. You can invoice the operating company a management fee, allowing you to control your salary arrangements independently of any agreements within the operating company. This is particularly useful if you co-own the operating company with a partner; you can agree on the same management fee and then determine your own salary within your holding.

Note: Don't forget to apply VAT to the invoice your holding sends to the operating company.

Employed by the operating company

Alternatively, there are reasons to be employed directly by your operating company:

• Reduced administrative burden: No need for separate payroll filings for your holding, minimizing the risk of errors.
• WBSO benefits: If your operating company has WBSO (Research and Development tax credit), you can offset the wage tax on your DGA salary. This isn't possible if you're employed by your holding, as you'd need a separate WBSO application for it.
• VAT considerations: If you can't reclaim VAT, it's better to be employed by the operating company.

Employed by both

Can't decide? You can opt to be employed by both BVs. This is useful if you own multiple companies. Under the group scheme, you're required to earn at least the minimum DGA salary across all BVs combined.

Pass-through salary arrangement

To add complexity, there's the pass-through salary arrangement, suitable if you have a minority stake as a DGA:

• Operating company: Pays employee insurance premiums.
• Holding: You're employed here and receive your net salary.

Essentially, the BV passes the salary through to the holding.

Need assistance with your choice?

We understand that making this decision isn't easy, given the various regulations involved. Our HR & payroll experts are ready to answer your questions. Contact us at support@employes.nl