The minimum salary to be received by a DGA from his BV(s) will be increased from €51,000 to €56,000 with effect from 2024.
Gross/net
Of the €5,000 gross salary increase, less than half remains net for most DGAs. The other part has to go to the taxman. That starts with tax at a rate of 36.97% (assuming the salary is the DGA's only income in box 1). But in addition, the employment tax credit and general tax credit are reduced by 6.510% and 6.630%, respectively. Less reduction means more tax is due. And on the higher salary, 5.32% of income-dependent healthcare insurance contribution must be paid.
Total tax burden on the salary increase is a whopping: 36.97% + 6.510% + 6.630% + 5.32% = 55.43%. This applies to DGAs who have not yet reached the state pension age.
Usual wage
The aforementioned minimum salary of €56,000 applies under the customary pay scheme. That regulation stipulates that the DGA must earn a salary that is at least equal to the higher of €56,000 or the salary earned by someone who is not a DGA in the most comparable employment. Only if the DGA demonstrates to the satisfaction of the tax authorities that a lower salary is customary in his situation, the salary may be set lower.