Salary vs dividend comparison in Excel

What does this tool do?

Who is it for?

• Directors of a bv who are unsure whether to pay themselves more salary or a dividend.
• Starters who have just set up a company and want to understand why their accountant proposes a particular salary.
• Self-employed people considering the switch to a company who want to see how profit from a company is taxed.
• Anyone who wants to prepare a conversation with their accountant with concrete figures instead of gut feeling.

What is included?

• Input sheet with the available profit, the desired salary and the applicable withholding tax rate.
• Scenario A: the full amount as director’s salary, with social contributions and personal income tax.
• Scenario B: a salary of your choice plus the rest as a dividend, with corporate tax and withholding tax.
• Overview with the net amount per scenario, the difference in euros and the total tax burden as a percentage.
• Parameter sheet with all rates, amounts and thresholds, with the source and the date of the last check.
• A note next to every input cell and every simplification, so you know what the file does and does not include.

How do you use the file?

1. 1

   Open the file and go to the “Input” sheet. Only the yellow cells are meant to be filled in.

2. 2

   Enter the profit your company can pay out this year, before your own salary and before corporate tax. Your accountant can give you this figure based on the interim accounts.

3. 3

   Enter the salary you want to take in scenario B. Start with what you receive today, or with the minimum salary for the reduced rate, and vary from there.

4. 4

   Choose the withholding tax rate: the standard 30 %, or 15 % if your company meets the VVPRbis conditions. If in doubt, ask your accountant.

5. 5

   Check on the parameter sheet whether the rates for corporate tax, social contributions and personal income tax are still correct and adjust them where needed.

6. 6

   Look at the “Overview” sheet: both scenarios sit side by side, with the net amount, the difference and the total tax burden. Change the salary on the input sheet to see at which amount the balance tips.

Worked example

A bv has €60,000 of profit available, before the director’s salary and before corporate tax. Simplified assumptions: social contributions of 20.5 % on the salary, an effective personal income tax rate of 35 % on the salary after contributions, 20 % corporate tax and 30 % withholding tax. Figures are rounded to the euro.

At the standard 30 % rate the gap is a few hundred euros; with VVPRbis it grows to almost €2,500 per year in favour of the dividend. The example applies the same effective personal income tax rate to both scenarios. In reality the extra €15,000 of salary in scenario A falls into the highest brackets, which widens the gap further. Remember that the salary in scenario A does build up more pension rights.

Sources & calculation method

This is how the calculation is built:

1. Scenario A: the full available amount is paid as salary. Social contributions = salary × contribution percentage. Personal income tax = (salary − social contributions) × simplified rate. Net = salary − social contributions − tax.
2. Scenario B: the chosen salary follows the same calculation as in scenario A. The rest of the available amount stays in the company as profit.
3. Corporate tax = (available amount − salary) × corporate tax rate. The file uses 20 % by default (reduced rate for small companies on the first €100,000) and shows a warning when the salary is below the minimum remuneration on the parameter sheet.
4. Dividend = profit after corporate tax. Withholding tax = dividend × chosen rate (30 % or 15 %). Net dividend = dividend − withholding tax.
5. Net in hand in scenario B = net salary + net dividend. The overview shows the difference with scenario A in euros and the total tax burden: all contributions and taxes together, divided by the available amount.

Assumptions

• Personal income tax is calculated in a simplified way with a single effective rate you set yourself (35 % in the example). The real rate is progressive, from 25 % to 50 % per income bracket, with a tax-free allowance and a municipal surcharge. For a precise calculation use our personal income tax tool or ask your accountant for a simulation.
• Social contributions are calculated as a flat percentage of the salary (20.5 % in the example, the rate for a self-employed person in main occupation up to the first ceiling). The real calculation is based on net taxable professional income, has a minimum contribution, a lower rate above the first ceiling and management fees charged by the social insurance fund.
• The reduced corporate tax rate of 20 % only applies to small companies that meet all conditions, including a salary of at least €45,000 to at least one director, or a salary at least equal to the company’s taxable income. Otherwise the rate is 25 %.
• The 15 % VVPRbis rate only applies to shares that meet the conditions of article 269, § 2 ITC 92, and only from the profit distribution of the third financial year after the contribution. Have your accountant confirm whether your shares qualify.

Limitations

• The file is an indicative comparison, not tax advice and not a substitute for a calculation by your accountant.
• It does not include pension build-up, VAPZ/PLCI or IPT/EIP, health insurance or other social rights that only a salary provides, nor benefits in kind, expense allowances or a liquidation reserve.
• It assumes the profit is paid out in full. Profit that stays in the company to invest or as a reserve is taxed differently and is not part of the comparison.

Sources

This page and the file were last updated on September 24, 2026. Legislation and rates may have changed since.

Frequently asked questions