When Your BV’s Turnover Grows But Your Salary Doesn’t: The Hidden Tax Trap Dutch DGAs Miss

Why This Matters Now

Imagine a Dutch BV that grows from €100,000 to €500,000 in turnover. Profits are steady, and reserves are increasing, but the DGA still pays only the statutory minimum salary of €58,000.

The founder feels clever, keeping salaries low, taking dividends, and staying tax-efficient.

Then the Belastingdienst sends a letter.

Growth isn’t the issue. The real question is whether your financials show that your salary aligns with your business reality. If your turnover rises but your pay stays low, it creates a mismatch that raises audit risk.

Approximately 40% of the 330,000 DGAs in the Netherlands reported salaries below the statutory minimum in 2023, typically without prior consultation with the Tax Authority. The Belastingdienst is missing roughly €5 billion in expected payroll taxes from DGAs. Enforcement activity is ramping up through 2026 and 2027.

In short, the statutory minimum was once considered safe. Now, with tougher enforcement and proportionality rules, keeping your salary at €58,000 while running a €500,000 business is risky.

What Is the Gebruikelijk Loon (Customary Salary)

The gebruikelijk loon rule is about proportionality. Your salary should correspond to three factors:

1. Responsibilities held

What decisions do you make? What expertise do you deploy? What operational control do you exercise?

2. Company profitability

Does the business generate consistent profits? Are margins healthy or volatile?

3. Market benchmarks

What would someone else in a comparable role earn in a similar company?

The €58,000 statutory minimumfor 2026 is just the lowest acceptable salary for a DGA. It only makes sense if you have limited responsibilities, modest profits, or other constraints.

When your consultancy generates €500,000 in turnover with healthy margins, and you’re the primary revenue driver, the statutory minimum stops being defensible. Proportionality demands alignment between economic activity and compensation.

Key point: The statutory minimum exclusively protects you if your business numbers support it. High turnover and low salaries break the proportionality rule.

How Do Mismatched Salaries Trigger Retroactive Tax Risk?

The audit mechanism

The Belastingdienst doesn’t first look at your intentions. They commence by reviewing your financial statements.

High turnover. Stable profitability. Growing reserves. Director compensation: €58,000.

If your business earns a lot and you’re running the show, why is your pay at the minimum? The Tax Authority may see this as using dividends to hide real profits.

Three consequences when the salary is deemed too low

1. Additional wage tax assessments (naheffingsaanslagen)

The gap between what you paid and what you should have paid is reclassified as salary, and full payroll taxes are charged.

2. Tax interest (belastingrente)

Interest is calculated retroactively from the year you underpaid.

3. Possible penalties (boetes)

If the underpayment seems intentional or careless, you could face extra fines.

These corrections can go back several years, leading to bigger liabilities that show up long after your original salary decision.

Keep in mind: Retroactive corrections can cause cash flow problems, since the tax bill often comes years after you earned and spent the money.

Why Do Founders Miss This Risk?

The psychological trap of discretionary salary

Founders often see their own pay as the most flexible part of the business.

Supplier payment? Fixed. Employee salary? Fixed. Rent? Fixed. Your own salary? Adjustable.

This mindset makes salary feel like a choice rather than a fixed cost. You might modify it based on cash flow, reinvestment, or personal spending.

But the Belastingdienst sees it differently.

For tax authorities, your salary is a key sign of real business activity. It shows whether your company is authentic or merely set up for tax benefits.

If your salary doesn’t change while your business grows, this mismatch can signal non-compliance. Authorities don’t have to prove intent, just that your pay doesn’t fit the proportionality rules.

Tax authorities see your salary as evidence of business structure, while you may see it as a personal choice. This difference in perspective increases audit risk.

What Is the Dividend Trap?

Why does a low salary plus high distributions create exposure?

On paper, it seems smart: keep your salary low to pay less payroll tax, and take profits as dividends taxed at a lower rate.

But this approach becomes a problem during an audit.

If the Belastingdienst decides your salary should have been higher, they’ll reclassify some retained profit as salary. This isn’t just a tax bill; it’s a bigger structural issue.

You already distributed dividends based on reported profit. Now, a chunk of that profit gets reclassified as salary, reducing the legitimate dividend base. You have taken distributions that exceed corrected profit levels, creating possible issues with proper profit distribution procedures.

The financial impact adds up: you’ll owe back taxes, interest, and may face issues with the legitimacy of past dividends.

In short, trying to save on taxes with dividends now can lead to salary tax problems later, and can affect past dividend payouts too.

What Changed in 2023 with DGA Salary Rules?

The elimination of the efficiency margin

Until 2022, DGAs could set salaries at 75% of comparable market rates using the doelmatigheidsmarge (efficiency margin). The logic: owner-operators work more efficiently than hired employees, justifying lower compensation.

Since 2023, the margin is gone. Now, your salary must match 100% of what’s typical for similar jobs.

This change makes it much harder to justify a lower salary. You can’t claim owner efficiency as a reason anymore; your pay must match the full market rate.

For DGAs who set their salary structure before 2023 and have not adjusted it since, this creates a latent risk. Whatever felt defensible under old rules may not survive scrutiny under current standards.

Rule change impact: Pre-2023 salary structures need to be reviewed. The 25% discount no longer applies, and previous decisions carry forward risk.

How Does the Burden of Proof Work?

Good documentation is key to a successful audit outcome.

Who has to prove what depends on whether your salary is above or below the statutory minimum.

Below €58,000: You must prove the lower amount is customary and justified. The Tax Authority assumes non-compliance unless you submit compelling documentation.

At or above €58,000: The Tax Authority must prove that your salary is higher. You’re in a defensive position, but the initial burden sits with them.

This sets a clear threshold: if you stay below the minimum without documentation, you take on more risk. If you meet or exceed it, the authorities must prove you should earn more.

Even if you meet the minimum, you’re not fully protected if your business could support a higher salary. It just changes who has to justify the amount.

The €58,000 minimum changes who must prove the salary is right, but it doesn’t protect you if your turnover and profits show you could earn more.

When Are Below-Market Salaries Defensible?

Valid reasons for lower compensation

A low salary isn’t always a problem. What matters is having clear, written reasons that explain the difference.

1. Structural reinvestment periods

You’re channeling profit into equipment, hiring, or market growth, which temporarily constrains the cash available for salaries.

2. Temporary downturns

Revenue declined due to client losses, market conditions, or operational disruptions, and salaries were adjusted proportionally.

3. Startup phase

The business has not reached stable profitability, and low salaries reflect genuine economic constraints.

4. Sector-specific benchmarks

Your industry demonstrates lower compensation norms, and you have comparable data to support this.

It’s vital to document your reasoning at the time you set your salary, not after you get an audit notice.

A brief memo explaining why the salary remains at €58,000 despite a €500,000 turnover creates an audit trail. It shows you considered the proportionality principle and made a deliberate choice based on business conditions.

Without documentation, the same choice can appear to be tax avoidance.

The rule is simple: written justification makes a questionable salary defensible as a business decision. Without it, you have no defense.

What Control Points Should You Install?

Five controls to reduce DGA salary exposure

1. Annual salary review tied to monetary performance

Review your salary every year when you close the books. Ask: Does this amount still correspond to turnover, profitability, and responsibilities? Document the decision.

2. Market benchmark comparison

Find two or three similar roles in other companies. Use salary surveys, industry data, or your network to set a range, and keep this information on file.

3. Written justification for below-market rates

If you decide to pay yourself less than the market rate, write a memo explaining your reasons. Mention business conditions, reinvestment plans, or short-term problems. Date it and keep it with your yearly financials.

4. Separation between salary decisions and dividend distributions

See your salary as a fixed business decision based on your company’s numbers. Dividends are a separate choice, based on available profit. Don’t let your preference for dividends affect your salary decision.

5. Professional review when turnover crosses thresholds

If your turnover jumps by 50% or passes €250,000 or €500,000, talk to your accountant or tax advisor about your salary. Don’t wait for an audit.

The ideal approach is to establish salary review processes before enforcement. It’s much cheaper to be proactive than to fix problems later.

Why Is Audit Risk Rising for DGAs?

The enforcement shift is happening now.

Historically, the Belastingdienst applied limited enforcement to DGA salary compliance. That is changing.

A May 2025 SEO research report explicitly recommended more frequent enforcement. Tax authorities confirmed that audits and book examinations targeting DGA salaries will intensify through 2026 and 2027.

The reason is a €5 billion gap between expected and actual DGA payroll taxes. With such a big shortfall, enforcement is now a top priority.

Who faces a higher audit probability?

Audit risk is rising for all DGAs, particularly those with:

• High turnover relative to reported salary
• Consistent profitability with static compensation
• Large dividend distributions alongside a minimum salary
• Multi-year patterns of unchanged salary despite business growth

This new enforcement isn’t about catching fraud. It’s about fixing the gap between your business numbers and your reported pay.

Because of the €5 billion tax gap, DGA salary compliance is now a policy priority. You should expect scheduled audits, not just random checks.

What Question Should You Ask Yourself?

Does your salary match your responsibilities, your company’s profits, and what others in similar roles earn?

If not, you need to document your reasons. Without this documentation, you’re taking on risk.

The aim isn’t just to save on taxes. It’s to keep your business structure aligned with your actual economic situation.

Keeping things consistent with reality reduces problems with authorities, makes planning easier, and avoids late corrections with extra interest.

It’s cheaper to set up good processes now than to fix things later. Put controls in place before you get an audit letter.

Frequently Asked Questions

What is the DGA salary minimum for 2026?

The statutory minimum gebruikelijk loon for DGAs in 2026 is €58,000. This is a floor, not a safe harbor. If your business generates high turnover with strong profitability, the Tax Authority expects your salary to exceed this minimum based on proportionality.

What happens if my DGA salary is too low?

The Belastingdienst will issue additional wage tax assessments (naheffingsaanslagen) for the difference. You will owe back taxes, retroactive interest (belastingrente), and potentially penalties (boetes). Corrections extend multiple years and create compounding financial liability.

How do I prove my low DGA salary is justified?

Document your reasoning when you set the salary. Write a memo explaining business conditions, reinvestment priorities, temporary downturns, or sector benchmarks. Keep market-comparison data and annual salary-review notes. Without contemporaneous documentation, low salaries appear as tax avoidance.

What is the efficiency margin for DGAs?

The efficiency margin (doelmatigheidsmarge) allowed DGAs to set salaries at 75% of market rates until 2022. From 2023 forward, this margin was eliminated. DGAs now need 100% market-rate alignment. Salary structures set before 2023 carry latent risk under current rules.

When should I increase my DGA salary?

Review your salary annually when closing your books. Increase salary when turnover grows significantly (50% or more), profitability stabilizes, or responsibilities expand. Consult your accountant when crossing turnover thresholds like €250,000 or €500,000.

Does paying dividends instead of salary create tax risk?

Yes. If the Tax Authority determines your salary was too low, they reclassify retained profit as salary. This creates back tax liability and complicates past dividend distributions because the legitimate dividend base shrinks. Low salary with high dividends signals potential non-compliance.

Who has the burden of proof in a DGA salary audit?

Below €58,000: you must prove the lower salary is justified. At or above €58,000: the Tax Authority must prove your salary is higher. Meeting the minimum shifts the load but does not eliminate risk when business economics suggest a higher earning capacity.

Are DGA salary audits increasing in the Netherlands?

Yes. The Belastingdienst confirmed intensified enforcement through 2026 and 2027 following a May 2025 SEO research report. The driver is a €5 billion tax gap in DGA payroll taxes. Audit probability is rising for DGAs with high turnover, static salaries, and large dividend distributions.

Key Takeaways

• The €58,000 statutory minimum is just a baseline, not a strategy. High turnover and low salaries create a mismatch that can trigger an audit.
• DGA salaries must correspond to responsibilities, company profitability, and market benchmarks, in accordance with the proportionality principle. The 75% efficiency margin was eliminated in 2023.
• Retroactive corrections can go back several years and include back taxes, interest, and penalties. The financial result often comes long after your original salary decision.
• A low salary with high dividends increases your risk. If your salary is reclassified, it can affect whether past dividends were legitimate.
• Write down your salary decisions every year. Without written reasons based on your business situation, low salaries can look like tax avoidance.
• Audit risk is rising through 2027 because of a €5 billion DGA payroll tax gap. Set up review processes before enforcement starts.
• It’s cheaper to have a good structure than to fix problems later. Annual salary reviews, market comparisons, and written explanations help reduce your risk before you get an audit letter.