How it works
A company that has made a profit can keep it or pay it out. The payment to the shareholders is the dividend. The general meeting of shareholders decides on it; the board must approve, and it does so only after the balance test and the distribution test.
The balance test asks whether the equity stays above the reserves the law and the articles require. The distribution test asks whether the company can keep paying its due debts for about a year after the payment. A board that approves a dividend that fails this test can be held personally liable.
The BV withholds 15% dividend tax when it pays a private shareholder and remits it to the tax authority. A Dutch resident DGA then pays box 2 on the dividend and credits the 15%. A holding that receives the dividend pays 0% under the participation exemption.
Interim dividend during the year is allowed, with the same tests. Many DGAs pay dividend once a year, after the annual accounts, and use the first box 2 bracket per fiscal partner.
Example
A BV has €90,000 profit after corporate tax and €40,000 in the bank it needs for the coming months. The board approves a dividend of €50,000. The BV withholds €7,500 dividend tax and pays €42,500 to the DGA. In the income tax return the DGA pays 24.5% on €50,000, which is €12,250, and credits the €7,500 already withheld.
The figures
All 2026 figures: Netherlands tax rates 2026 · the 2027 figures: Netherlands tax rates 2027.
Questions people ask
Who decides on a dividend?
The general meeting of shareholders decides, and the board approves after the balance test and the distribution test. In a one-person BV that is the same person wearing two hats, with two written decisions.
Can a BV pay dividend in its first year?
Yes, when it has profit and passes both tests. Share premium and reserves can also be paid out, with the same tests.
Holdwise, Hoofddorp. Definition and explanation maintained with the Dutch and German glossaries; figures from the central rates source, year 2026. Updated 16 September 2026.
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