Executive compensation
This article deals with the remuneration of company directors 💰. If you run your own business as an individual, see Remuneration for self-employed workers. If your business (individual or company) employs staff, also go to Remuneration - Employee.
The remuneration of a company director is an expense for the company. It is a 100% deductible expense, as it is subject to social security contributions and personal income tax.
The company that pays you a gross monthly salary must :
pay you a net monthly amount
pay your self-employed social security contributions on a quarterly basis (if you choose to have them paid on your behalf)
pay a quarterly withholding tax to the government (an advance on personal income tax; in the self-employed sector, these are advance tax payments).
If your company provides you with a car or computer (the cost of which is borne by the company), a notional remuneration is added to your taxableincome as an individual. As a reminder, this notion is for tax purposes only.
💡 Maximizing your company's remuneration is not interesting! Otherwise, it's better to remain an individual. The point of the company is to leave part of the profits in the company, so that they can be paid out in other ways (dividend, liquidation reserve, etc.).