In 2021, substantial shareholders may take out a lower compulsory salary (“gebruikelijk loon”) if there is a decrease in turnover of their company. The Dutch Tax Authorities have published a new formula for this purpose.
Substantial interest holders may use this formula without prior permission from the Dutch Tax Authorities to lower the compulsory salary. However several conditions apply before the salary may be lowered:
- The estimated turnover for the whole of 2021 will be compared to the actual turnover for the whole of 2019.
- An entry threshold applies: reduction of the customary wage is possible with a loss of turnover of at least 30% in 2021 compared to 2019.
- The salary may not be lowered retroactively.
- It is not allowed to take out Dividends and/or to take out funds through a current account loan due to the lowering of the salary.
- The turnover of both reference years 2019 and 2021 may not be influenced by incidental events (e.g. merger, acquisition, liquidation)
The formula is as follows:
Compulsory salary 2021= compulsory salary for 2019 * (the whole turnover(excluding VAT) of 2021 / the whole turnover(excluding VAT) of 2019)