DGA Salary: What You Need to Know About the Mandatory Salary of a Director-Shareholder

As a director-shareholder (DGA) of a BV you are required to pay yourself a minimum salary. This is called the customary salary and is set by the Dutch Tax Authority to prevent director-shareholders from paying themselves too low a salary to save on tax. In this article we explain what the DGA salary entails, how it is determined and what options you have to handle it smartly.

What is the DGA salary?

The DGA salary is the salary that a director-shareholder receives from their BV and over which payroll tax and contributions are paid. This salary is set by the Tax Authority according to the customary salary regime.

For 2025 a minimum DGA salary of €56,000 per year applies, unless you can demonstrate that a lower salary is justified.

How is the DGA salary determined?

The Tax Authority uses the following guidelines:

1. At least €56,000 per year (2025), unless a lower salary is defensible.
2. 75% of the salary of someone in a comparable employed position.
3. The highest salary of employees within your own BV (if you have staff).

If you want to set a lower salary, you must be able to substantiate this properly. The Tax Authority can impose corrections if they consider the salary unreasonably low.

When can you use a lower DGA salary?

There are situations where a director-shareholder may pay themselves a lower salary:
- Financial difficulties: If the BV does not make sufficient profit to pay a salary of €56,000.
- Start-up BVs: In the start-up phase you can substantiate a lower salary to protect cash flow.
- Lower customary salary: If you can demonstrate that a comparable employee in employment earns less.

Want to know whether you are entitled to a lower salary? You must be able to substantiate this properly with figures and documentation.

DGA salary and tax benefits

As a director-shareholder you can handle your remuneration smartly to save on tax. Here are some options:

Paying dividend: Instead of a higher salary you can pay yourself dividend. Dividend is taxed at 15% corporate tax and 26.9% income tax (Box 2), which can in some cases be more advantageous than payroll tax. Note: this is only permitted after the minimum salary has been paid.

Company car: Putting a car on the company can be fiscally advantageous, but watch out for the addition to income.

Pension accrual: Via a pension scheme you can build up wealth in a tax-friendly way.

Common mistakes when setting the DGA salary

❌ Using too low a salary without substantiation.
❌ Only paying dividend and no salary, which can lead to additional assessments.
❌ Insufficient documentation when requesting a reduction of the salary.

‍