DGA salary standards

What is the customary salary scheme?

As a director-major shareholder (DGA), you are an employee of your own BV. The Dutch Tax Administration wants to prevent you from mainly receiving dividends and too little salary. That is why the customary salary scheme applies: you set a salary that is customary for your activities and position. The scheme looks at what is customary in comparable situations and applies a statutory minimum. The starting point is that you follow at least the highest relevant reference salary. Deviations are allowed, but only with solid substantiation. Do you work with one or more BVs and want broader advice on your structure? See our Services for local entrepreneurs and BVs.

DGA salary standards and criteria in 2026

In 2026 you use these three references when setting the DGA salary. Your salary is at least the highest of:

• The salary from the most comparable employment outside your own BV.

• The highest salary of the other employees within your own BV or affiliated BVs.

• The statutory minimum amount of €58,000 in 2026.

Paying more is always allowed. If you work in a specialist niche or carry greater responsibility than employees in paid employment, the first or second criterion may exceed the fixed minimum amount. Make sure you record each year how you arrived at the chosen salary, including sources and assumptions. This salary also affects your tax during the year; to avoid surprises, read more in Provisional assessment 2026 for entrepreneurs.

When may you use a lower DGA salary?

A lower salary is possible, provided you make this plausible with objective data. Two routes are common:

• Comparable employment lower: use market data, job ads, collective labour agreement (CAO) information, and a task and hours profile to show that the appropriate salary is lower than the standard norms. Factors such as revenue, profitability, responsibilities, and time spent all count.

• €5,000 threshold: if you can make it plausible that the customary salary does not exceed €5,000 per year in total, you only report the salary actually received (if any) and you do not have to report additional (deemed) salary. Note this is the sum across all your BVs, not per separate entity.

Unsure whether a reduction is defensible, or is a temporary nil assessment needed due to cash flow or losses? Profinancials can prepare the substantiation and submit the request for reduction or nil assessment to the Dutch Tax Administration.

Start-ups and the customary salary

Innovative start-ups have, under conditions, extra room to set the DGA salary lower. The idea is that young companies want to deploy capital for product development and market validation, while the DGA often cannot yet earn a market-rate salary. In practice it comes down to strict conditions and a limited duration. Think of requirements such as demonstrable innovative activities, an R&D statement (S&O) and respecting state aid frameworks such as de minimis. Additional administrative obligations may also apply, such as recording the choice and reasoning for a lower salary and monitoring the term.

It is important that you can show why a lower salary is businesslike: what activities do you perform, how many hours do you spend, what is the state of revenue, burn rate, runway and funding, and what is customary for your sector stage. Substantiation with budgets, cash flow forecasts, investment plans and external references increases defensibility. You must also assess annually whether circumstances remain the same and whether scaling up the salary is needed.

Because conditions and implementation rules change periodically, tailor-made advice is essential. Profinancials assesses whether you qualify for a start-up approach, helps with the substantiation and ensures you remain within current laws and regulations.

Salary or dividend: what is sensible?

DGAs often receive both salary and dividend. Dividend is taxed in Box 2 and in 2026 there are two rates: 24.5 percent in the first bracket and 31 percent above that. Typically 15 percent dividend tax is withheld and credited in Box 2. The customary salary prevents you from shifting too much to dividends. The optimal mix depends on goals such as pension accrual, mortgage plans, credit rating and cash position. We will run the numbers with you and record the choices, including what this means for your Income tax return for DGA.

Frequently asked questions

What is the mandatory DGA salary in 2026?

Apply the highest of: the salary in a comparable position, the highest salary within your BV or affiliated BVs, or €58,000. Paying more is always allowed.

How do I determine the ideal DGA salary?

Look at tasks, hours, industry, profitability and cash flow. Optimize together with dividends and record your substantiation annually.

May I as a DGA pay less than the norm?

Yes, if you substantiate this with objective data. If in doubt or for temporary relief, Profinancials can submit a reduction or nil assessment request.

Does the €5,000 threshold apply per BV or in total?

That threshold applies to the total of your activities across all your BVs combined, not per separate company. If you stay below this threshold, you only report the salary actually received (if any) and you do not have to report additional (deemed) salary.

Does the start-up scheme still exist and am I eligible?

There is room for innovative start-ups to pay a lower salary, but conditions and term change periodically. We assess your situation and arrange the substantiation.

Need help with your DGA salary?

Want certainty that your DGA salary meets the standards and is tax-smart? Profinancials determines a defensible customary salary with you, submits the request for reduction or nil assessment if desired, and advises on the salary–dividend mix. Schedule a Tax advice on DGA salary (customary salary) for personal, well-founded advice. Working in the region? Our Tax advisor for DGA and BV in Eindhoven helps with implementation, such as payroll taxes and alignment between corporate income tax (CIT) and personal income tax (PIT). You get a dedicated advisor, unlimited contact and transparent fixed fees. Contact us for personal advice.