What is a DGA?
DGA stands for Director-Major Shareholder (Directeur Grootaandeelhouder), which applies when you own more than 5% of the shares in a private limited company (B.V.). As a DGA, you are typically employed by your own holding company, which pays your salary.
For 2024, the Dutch Tax Authority (Belastingdienst) has increased the minimum DGA salary to €56,000.
What is the DGA salary?
To prevent DGAs (and significant shareholders) from paying too little income tax, the Dutch Tax Authority requires a minimum salary. Since distributing dividends is often more tax-efficient, this salary requirement ensures a fair contribution.
The DGA salary must be set at the highest of the following amounts:
- 75% of the salary for a comparable job
- The salary of the highest-paid employee in your company
- €56,000 (DGA salary for 2024)
In most cases, this means you must pay yourself at least €56,000 per year. If you use a company car, the taxable benefit (bijtelling) is also included in your DGA salary.
Lowering your DGA salary
Just Started Your Business? If you’ve recently launched your business, you might not have the financial resources to pay yourself the required salary. The tax authority cannot force you to meet this obligation if your company cannot afford it.
However, you must be able to justify why you cannot pay the standard DGA salary. It’s always best to consult the tax authority to avoid issues later.
Lower DGA salary for startups
Good news! Startups can qualify for a reduced DGA salary under specific conditions. Under certain circumstances, you can apply the statutory minimum wage instead of the standard DGA salary.
To qualify, you must meet these criteria:
You have an S&O declaration (Speur- & Ontwikkelingswerk, R&D tax credit) for at least one calendar year.
You qualify for the increased startup tax reduction (startersaftrek). This applies if:
- You had no employees in one or more of the past five years.
- You have claimed the S&O tax deduction no more than twice.
You have an official declaration from RVO confirming that you stay below the de-minimis threshold.
The startup regulation applies for a maximum of three years.
Processing your DGA salary
Have you recently founded a holding or B.V.? Or have you transitioned from a sole proprietorship (eenmanszaak) or partnership (VOF) to a B.V.?
With Employes, you can easily process your DGA salary—in just a few clicks. Want to know more about how it works and what it costs?
Need help?
Got questions about DGA salaries, tax rules, or payroll? Our HR & payroll experts are ready to assist you.
Contact us at: support@employes.nl
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Rob Kroezen
Founder
5+ years ago, Marius and Rob founded Employes together. With a mission to simplify payroll for business owners and HR managers.
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