The employment relationship of a CEO/major shareholder (in Dutch “DGA”) is recognized by the Tax Authorities as a particular employment relationship. As a CEO you are also in charge of implementing your own salary. TOSS supports CEO’s in their salary administration with possibly a very advantageous rate.
Benefits of outsourcing CEO salary administration:
You save time and money;
You are sure that the correct law and regulation is being applied;
Your tax declarations are submitted on time.
Do you have a high function within a private or joint-stock company in the Netherlands and you own shares? Then you are a directeur-grootaandeelhouder (DGA) which is the Dutch term for a CEO/director/major shareholder.
If there is 5% or more shareholding then it is already enough to qualify for the term DGA.
Every year the Tax Authorities set a standard minimum year salary for CEO’s. This means that the Tax Authorities assume that a CEO is earning what is a standard salary for the level of work and tenure. The current year salary can be found on www.belastingdienst.nl or you can request it via email@example.com.
Income tax, social insurance premiums and the ZVW premium are all to be withheld from the salary a CEO earns.
Usually the CEO is not covered for the employee insurance policies.
TOSS can process the salary administration for the CEO. Tax withholdings and the ZVW premium will be calculated and withheld from the salary. We submit the tax declaration on a monthly basis.
The standard documents we deliver when we handle your CEO salary administration are:
As mentioned before, the CEO is usually not covered for employee insurance policies. However, a lower contribution toward the ZVW (Health Insurance Law) that is withheld from the salary is applicable. This premium is set on a yearly basis by the Tax Authorities. The current percentage can be found on www.belastingdienst.nl or via firstname.lastname@example.org.
When services are combined, such as for example, the company’s whole salary administration besides the CEO payment are brought to TOSS, then TOSS is usually able to offer a very reduced fee for administering the CEO salary.
As The One Stop Shop, TOSS offers a wide range of services for expats and/or their employers in the field of living and working in the Netherlands with the aim of making every related process as smooth and effective as possible.
We have over 20 years of experience and we have carefully built up an extensive global network of specialists to serve you. All our team members are specialized and educated with all needed payroll certificates and our services meet the (inter)national standards.