How it works
A DGA decides their own salary, so there is a legal minimum. The salary must be at least the highest of three amounts. These are the yearly norm, the salary in the most comparable job, and the salary of the best-paid other employee of the company. For most owner-managed companies, the yearly norm is the amount that applies.
The norm is €58,000 in 2026. A higher salary is allowed. A lower salary is allowed only in three cases. The most comparable job pays less. A new BV still has too little money for the full salary, for up to three years. Or lasting losses threaten the survival of the BV. Part-time work, growth or low profit on their own are insufficient reasons. The BV decides this itself, and it must be able to support the lower salary. A prior consultation with the tax authority gives certainty in advance.
The salary is deductible for the BV, and the DGA pays box 1 tax on it. Salary above what the DGA needs to live on costs more tax than profit kept in the company. That profit is taxed at 19% now and as dividend later, when the DGA takes it out. Decide on salary and dividend together.
A DGA who works for several companies in one group receives the salary through one of them, under the pass-through payroll rule. The DGA then has one salary, and the tax authority tests it once.
Example
A founder starts a BV in March and expects a loss in the first year. The new BV still has too little money for the full salary, so it pays him €30,000 during the start-up phase. He keeps the figures that show why. In year three the company earns well, and he raises his salary to the norm.
The figures
Every rate for 2026 is listed in Netherlands tax rates 2026, and the figures for 2027 are in Netherlands tax rates 2027.
Questions people ask
What happens when a salary below the norm lacks a valid reason?
In an audit, the tax authority can raise the salary to the norm. It then charges payroll tax on the difference, with interest. A prior consultation gives certainty in advance.
Does the norm apply to a DGA who lives abroad?
The Dutch rule applies to the BV as employer. Where the salary is taxed depends on the tax treaty with the country where the DGA lives and works. You can see the outcome per country in the director salary planner.
Holdwise, Hoofddorp. We keep this definition in line with our Dutch and German glossaries, and the figures are those for the tax year 2026. Updated 30 September 2026.
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