If you are a director of a private limited company (Besloten Vennootschop or BV) and you own at least 5% of the shares in this limited company then you have to pay yourself a customary salary. The height of the salary depends on your situation, but in principle it is at least € 46,000 (in 2020) or equal to the most comparable employee of another company or the highest earning employee within your company.
If the corona crisis has a major impact on the turnover and liquidity of a private limited company (BV), the company and director-major shareholder (DGA) may temporarily agree on a lower monthly salary during 2020. At the end of the year, the BV determines the customary annual salary for 2020 and declares this in the wage tax return.
For a DGA you may therefore determine the customary salary for 2020 afterwards. Then it is clearer what the impact of the corona crisis will be. You will then have more insight into the determination of the amount of the customary annual salary.
Do not reduce the salary retroactively
Salary that the DGA has already received over elapsed periods in 2020 cannot be reversed. The BV and DGA can only reduce the salary for future months in 2020.
Reduction in wage tax returns
In the event of a reduction in the monthly salary, the wage tax returns state the salary the DGA has received, including any salary in kind (e.g. private use of a car). At the latest at the end of the calendar year or when the employment ends, the salary for the year 2020 is determined. If the BV has paid too little salary, the BV must declare the difference as salary and calculate wage tax on it.
A request for prior consultation is not required.
The BV and DGA may temporarily agree a lower salary. This does not require a request for approval from the Tax Authorities. Therefore, you do not have to submit a request for pre-consultation.