Income of the head of a business

Verified 26 November 2021 - Legal and Administrative Information Directorate (Prime Minister)

When a business has been set up, it is important to provide for the remuneration of business officers from the beginning of their social mandate. There are several forms and types of compensation.

What applies to you ?

If you are a majority manager

What is a majority manager?

You majority leader when you have more than 50% of share business.

As an Associate Executive, you have the option of earning multiple rewards: you can accumulate dividend, remuneration for your social mandate and benefits.

Dividends

At the end of the accounting year, at the time of approval of the accounts, the general meeting determines whether or not there will be a dividend distribution.

This distribution depends on the profits made by the business and its needs.

Dividends correspond to the profits distributed to the partners of the business.

The executive officer may receive dividends that will be calculated based on the number of dividends share that he holds.

When the director receives dividends, he must report.

They taxed in the category of income from movable capital one lump sum to 30%.

However, it is possible to tax your dividends at Income tax scale.

It is important to compare the 2 tax methods based on the amount of dividends received to choose the most favourable option.

Remuneration of social mandate

The majority leader of a business shall exercise social mandate which may free or paid.

The choice remuneration and amount can be determined in any of the following ways:

In articles, but it is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
On general assembly. The ruler cannot decide alone. It shall be put to a vote in which he has the right to participate. On the other hand, we have to be careful when there is a majority that this vote is not one abuse of majority.

It exists 3 Shapes possible compensation:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Benefits

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Refund of fees : the refund may be a lump sum refund equal to 10% (tax rebate) or it can be equal to actual costs
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement

The leader cannot nor do you benefit yourself without the agreement of the partners business.

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is business tax, pay is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
However, if the business is income tax, the remuneration is taxed on the income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The manager has the status of a self-employed person, he or she reports to social security scheme for the self-employed even if he is not paid.

If you are a minority or equal manager

What is a minority or egalitarian manager?

You egalitarian manager if you own 50% of share business.

You minority manager if you own less than 50% of the business.

As an Associate Executive, you have the option to earn multiple rewards. You can accumulate dividend, remuneration for your social mandate, a remuneration of your employment contract and benefits.

Dividends

At the end of the accounting year, at the time of approval of the accounts, the general meeting determines whether or not there will be a dividend distribution.

This distribution depends on the profits made by the business and its needs.

Dividends correspond to the profits distributed to the partners of the business.

The executive officer may receive dividends that will be calculated based on the number of dividends share that he holds.

When the director receives dividends, he must report.

They taxed in the category of income from movable capital one lump sum to 30%.

However, it is possible to tax your dividends at Income tax scale.

It is important to compare the 2 tax methods based on the amount of dividends received to choose the option that is most favourable to you.

Remuneration of social mandate

The minority or egalitarian leader of a business exercises social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, but it is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
On general assembly. The ruler cannot decide alone. Remuneration shall be proposed to a vote in which he has the right to participate

It exists 3 Shapes possible compensation:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Remuneration of employment contract

A leader may combine a social mandate with a employment contract if:

For the work contract (it must match a technical work)
There must be a subordination link between the director and the partners

Benefits

Executives cannot afford benefits without the agreement of the partners business.

In addition to such remuneration, benefits :

Benefits in kind : accommodation, car ...
Refund of fees : the refund may be a lump sum refund equal to 10% (tax rebate) or it can be equal to actual costs
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

FYI

if the social mandate is broken, the employment contract is not broken.

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is business tax, pay is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The leader status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled.

He may be eligible for unemployment insurance under his employment contract if he has one.

What is a non-associate executive?

The non-partner manager does not hold any corporate shares of the business.

He therefore cannot have access to the dividends unlike the partners.

As a non-associate executive, he or she has the option of earning several remuneration: it can accumulate remuneration, rpayment of employment contract and benefits.

Remuneration of social mandate

The non-associate director of a business exercises a social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, but it is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
On general assembly. The ruler cannot decide alone. It shall be put to a vote in which he has the right to participate.

It exists 3 Shapes possible compensation:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Remuneration of employment contract

A leader may combine a social mandate with a employment contract if:

For the work contract (it must match a technical work)
There must be a subordination link between the director and the partners

Benefits

Executives cannot afford benefits without the agreement of the partners business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Refund of fees : the refund may be a lump sum refund equal to 10% (tax rebate) or it can be equal to actual costs
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

FYI

if the social mandate is broken, the employment contract is not broken.

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is business tax, pay is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
However, if the business is income tax, the remuneration is taxed on the income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The leader status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled. He may be eligible for unemployment insurance under his employment contract if he has one.

Compensation for business officers must be determined from the beginning of his term of office.

Case 1: you are the majority president

What is a Majority Associate President?

An Associate Chair has a majority when it has more than 50% of share within the business that he leads.

As an Associate Chair, you can earn multiple rewards.

You can accumulate dividend, remuneration for your social mandate and benefits.

Dividends

At the end of the accounting year, at the time of approval of the accounts, the general meeting determines whether or not there will be a dividend distribution.

This distribution depends on the profits made by the business and its needs.

Dividends correspond to the profits distributed to the partners of the business.

An executive may receive dividends based on the number of shares held.

When the director receives dividends, he must report.

They taxed in the category of income from movable capital one lump sum to 30%.

However, it is possible to tax your dividends at Income tax scale.

It is important to compare the 2 tax methods based on the amount of dividends received to choose the option that is most favourable to you.

Remuneration of social mandate

The President of a business shall social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, but it is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
On general assembly. The ruler cannot decide alone. It shall be put to a vote in which he has the right to participate. On the other hand, we have to be careful when there is a majority that this vote is not one abuse of majority.

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Benefits

Executives cannot afford benefits without the agreement of the partners business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Refund of fees : the refund may be a lump sum refund equal to 10% (tax rebate) or it can be equal to actual costs
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is business tax, pay is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
However, if the business is income tax, the remuneration is taxed on the income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The leader status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled.

Case 2: you are a minority or an egalitarian president

What is a controlling or egalitarian associate chairman?

You egalitarian associate president if you own 50% actions of the business.

You minority associate if you own less than 50% actions of the business.

As an Associate Executive, you have the option to earn multiple rewards. You can accumulate dividend, remuneration for your social mandate, remuneration for a work contract and benefits.

Dividends

At the end of the accounting year, at the time of approval of the accounts, the general meeting determines whether or not there will be a dividend distribution.

This distribution depends on the profits made by the business and its needs.

Dividends correspond to the profits distributed to the partners of the business.

The executive officer may receive dividends that will be calculated based on the number of dividends share that he holds.

When the director receives dividends, he must report.

They taxed in the category of income from movable capital one lump sum to 30%.

However, it is possible to opt for a taxation of dividends at Income tax scale.

It is important to compare the 2 tax methods based on the amount of dividends received to choose the option that is most favourable to you.

Remuneration of social mandate

The President of a business shall social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, but it is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
On general assembly. The ruler cannot decide alone. It shall be put to a vote in which he has the right to participate.

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration: part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Remuneration of employment contract

A leader may combine a social mandate with a employment contract if:

For the employment contract: it must match technical work
There must be a subordination link between the director and the partners

Benefits

Executives cannot afford benefits without the agreement of the partners business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Refund of fees : the refund may be a lump sum refund equal to 10% (tax rebate) or it can be equal to actual costs
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

This remuneration is income tax in the salary and wages category.

A standard deduction 10% or actual professional expenses are applied.

The leader status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled.

He may be eligible for unemployment insurance under his employment contract if he has one.

What is a non-associate president?

You are a non-associate president when you do not have a corporate interest in the business you run.

As a non-associate president, you have the option of earning multiple salaries. You can accumulate an rremuneration for your social mandate, pay for your work contract and benefits.

Remuneration of social mandate

The President of a business shall social mandate which may free or paid.

It can accumulate a work contract with its social mandate as from the time it performs technical functions separate from the social mandate.

The President may waive the remuneration if he so wishes.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, but it is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
On general assembly

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

The partners may also decide to pay the director in the form of a allocation of shares.

Remuneration of employment contract

He can combine his social mandate with a employment contract if:

For the employment contract: it must match technical work
There must be a subordination link between the director and the partners

Benefits

Executives cannot afford benefits without the agreement of the partners business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Refund of fees : the refund may be a lump sum refund equal to 10% (tax rebate) or it can be equal to actual costs
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is imposed on the business tax, the remuneration is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

He status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled.

He may be eligible for unemployment insurance under his employment contract if he has one.

If he is not paid, the president can still enjoy health coverage with universal health coverage.

Associate Director

Majority Partner

What is a majority Associate Director General?

The Associate Director General shall have a majority if he has more than 50% actions of the business.

As Associate Director General, you have the option of earning multiple salaries: you can accumulate dividend, remuneration for your social mandate and benefits.

Dividends

At the end of the accounting year, at the time of approval of the accounts, the general meeting determines whether or not there will be a dividend distribution.

This distribution depends on the profits made by the business and its needs.

Dividends correspond to the profits distributed to the partners of the business.

The executive officer may therefore receive dividends that will be calculated based on the number of shares he holds.

When the director receives dividends, he must report.

They taxed in the category of income from movable capital

or one lump sum to 30%,

option at Income tax scale.

It is important to compare the 2 tax methods based on the amount of dividends received to choose the option that is most favourable to you.

Remuneration of social mandate

He exercises social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, which is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult
By the general meeting of partners. The ruler cannot decide alone. It shall be put to a vote in which he has the right to participate. On the other hand, we have to be careful, when there is a majority, that this vote is not a abuse of majority.

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Benefits

Director General cannot grant himself benefits without the agreement of the partners business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

How this remuneration is taxed depends on how the business is taxed.

If the business is imposed on the business tax, the remuneration is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The leader hasemployee, enabling it to benefit from the general system of employee protection.

He pays contributions based on his remuneration.

Minority or Equal Partner

What is a minority or egalitarian Associate Director General?

The Director General shall be a minority when he has less than 50% actions of the business.

The Managing Director shall be equal when 50% actions of the business.

As Associate Director General, you have the option to earn multiple compensation. You can accumulate dividend, remuneration for your social mandate, pay for your work contract and benefits.

Dividends

At the end of the accounting year, at the time of approval of the accounts, the general meeting determines whether or not there will be a dividend distribution.

This distribution depends on the profits made by the business and its needs.

Dividends correspond to the profits distributed to the partners of the business.

The executive officer may therefore receive dividends that will be calculated based on the number of shares he holds.

When the director receives dividends, he must report.

They taxed in the category of income from movable capital

or one lump sum to 30%,
option at Income tax scale.

It is important to compare the 2 tax methods based on the amount of dividends received to choose the option that is most favourable to you.

Remuneration of social mandate

The Director General of a business shall social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, but it is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
By the general meeting of partners. The ruler cannot decide alone. It shall be put to a vote in which he has the right to participate.

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Remuneration of employment contract

He can combine his social mandate with a employment contract if:

For the employment contract: it must match technical work
There must be a subordination link between the director and the partners

Benefits

Director General cannot grant himself benefits without the agreement of the partners business.

In addition to such remuneration, benefits :

Benefits in kind : accommodation, car ...
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

How this remuneration is taxed depends on how the business is taxed.

If the business is imposed on the business tax, the remuneration is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The Director-General has the status of an employee-like employee, which enables him to benefit from the general system of employee protection.

He pays contributions based on his remuneration.

Non-Associate Director

What is a non-associate CEO?

The CEO is not a partner when he does not own any shares of the business.

As a non-associate general manager, you have the option of earning multiple salaries. You can accumulate remuneration for your social mandate, pay for your work contract and benefits.

Remuneration of social mandate

The Director General of a business shall social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, which is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult
By the general meeting of partners

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Remuneration of employment contract

He can combine his social mandate with a employment contract if:

For the employment contract: it must match technical work
There must be a subordination link between the director and the partners

Benefits

Director General cannot grant himself benefits without the agreement of the partners business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

How this remuneration is taxed depends on how the business is taxed.

If the business is imposed on the business tax, the remuneration is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The President has the status of an employee-like employee, which allows him to benefit from the general system of employee protection.

He pays contributions based on his remuneration.

If you are an administrator

Directors of an SA receive fixed pay for the functions they perform.

It is the general meeting that determines a global amount that is then distributed among the directors by the board of directors.

Such remuneration shall taxable in the class of income from movable capital.

Directors are not subject to the social status of self-employed workers and the general social security system. They are therefore subject only to social package.

In exceptional cases, they may also collect additional remuneration for special missions.

Such exceptional remuneration shall be taxed in the non-commercial profits. They not submitted payroll taxes.

Directors elected by employees and who receive a salary for the functions of their contract shall not no reduction in remuneration by virtue of the performance of their duties as directors.

If you are Chairman of the Board

The Chairman of the Board of Directors may be a shareholder or a non-shareholder of the business.

Chairman

Majority shareholder

What is a controlling shareholder chairman?

The Chairman Shareholder shall have a majority if he has more than 50% actions of the business.

As Chairman of the Board of Directors, you have the option of earning multiple earnings. You can accumulate dividend, remuneration for your social mandate and benefits.

Dividends

At the end of the accounting year, at the time of approval of the accounts, the general meeting determines whether or not there will be a dividend distribution.

This distribution depends on the profits made by the business and its needs.

Dividends correspond to the profits distributed to the partners of the business.

The executive officer may therefore receive dividends that will be calculated based on the number of shares he holds.

When the director receives dividends, he must report.

They taxed in the category of income from movable capital

or one lump sum to 30%,
option at Income tax scale.

It is important to compare the 2 tax methods based on the amount of dividends received to choose the option that is most favourable to you.

Remuneration of social mandate

The Chairman of the Board of Directors shall be paid for his duties as a Director.

He also exercises social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, which is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
By the Board of Directors of the business. The ruler cannot decide alone. It shall be put to a vote in which he has the right to participate. On the other hand, we have to be careful, when there is a majority, that this vote is not a abuse of majority.

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business. (history of profit sharing).
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Benefits

The Chairman of the Board of Directors cannot grant himself benefits without the agreement of the directors business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is imposed on the business tax, the remuneration is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The leader status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled.

Minority or equal shareholder

What is a minority or egalitarian shareholder chairman?

The shareholder chairman shall be a minority when he has less than 50% actions of the business.

The Chairman Shareholder shall be egalitarian in 50% actions of the business.

As Chairman of the Board of Directors, you have the option of earning multiple earnings. You can accumulate dividend, remuneration for your social mandate, pay for your work contract and benefits.

Dividends

At the end of the accounting year, at the time of approval of the accounts, the general meeting determines whether or not there will be a dividend distribution.

This distribution depends on the profits made by the business and its needs.

Dividends correspond to the profits distributed to the partners of the business.

The executive officer may therefore receive dividends that will be calculated based on the number of shares he holds.

When the director receives dividends, he must report.

They taxed in the category of income from movable capital

or one lump sum to 30%,
option at Income tax scale.

It is important to compare the 2 tax methods based on the amount of dividends received to choose the option that is most favourable to you.

Remuneration

The Chairman of the Board of Directors shall be paid for his duties as a Director.

The Chairman of the Board of Directors of a business shall social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, which is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
By the Board of Directors of the business. The ruler cannot decide alone. It shall be put to a vote in which he has the right to participate.

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business. (history of profit sharing)
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Remuneration of employment contract

He can combine his social mandate with a employment contract if:

For the employment contract: it must match technical work. It must have been put in place forward his or her mandate as a director.
There must be a subordination link between the director and the partners

Benefits

The Chairman of the Board of Directors cannot grant himself benefits without the agreement of the directors business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is imposed on the business tax, the remuneration is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The leader status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled.

He may be eligible for unemployment insurance under his employment contract if he has one.

Non-shareholder chairman

What is a non-shareholder chairman?

The President is not a shareholder of the business when he does not hold shares of the business.

As a non-shareholder chairman, you have the option of earning multiple earnings. You can accumulate remuneration for your social mandate, pay for your work contract and benefits.

Remuneration of social mandate

The Chairman of the Board of Directors shall be paid for his duties as a Director.

The Chairman of the Board of Directors of a business shall social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, which is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
By the Board of Directors of the business

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business. (history of profit sharing)
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Remuneration of employment contract

He can combine his social mandate with a employment contract if:

For the employment contract: it must match technical work. It must have been put in place forward his or her mandate as a director.
There must be a subordination link between the principal and the partners.

Benefits

The Chairman of the Board of Directors cannot grant himself benefits without the agreement of the directors business.

In addition to such remuneration, benefits :

Benefits in kind : accommodation, car ...
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is imposed on the business tax, the remuneration is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The leader status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled.

He may be eligible for unemployment insurance under his employment contract if he has one.

The members of the Executive Board shall be paid for the duties they perform.

The choice remuneration and amount for the purposes of the social mandate shall be determined by the supervisory board.

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

A standard deduction 10% or actual professional expenses are applied.

The remuneration of the members of the Executive Board shall be taxed in the categories of salaries and wages.

The members of the Executive Board have the status of assimilated employee, which allows them to benefit from the general social security system.

They can benefit from all the rights of employees who have been given a contract of employment.

The members of the Supervisory Board shall receive remuneration for the functions they perform.

They may also receive exceptional compensation for special missions.

One standard deduction of 10% or actual professional expenses are applied.

Income received by members of the Supervisory Board shall be taxed in the income from movable capital.

When exercising employee functions, income from the employment contract shall be taxed in the salary and salary categories.

The members of the Supervisory Board shall haveemployee and benefit from the general social security system.

If they have an employment contract, they can enjoy all the rights of the employees.

Director General Shareholder

Majority shareholder

What is a controlling shareholder managing director?

The managing director of the shareholder shall majority when more than50% actions of the business.

As a general manager, you have the option of earning multiple earnings. You can accumulate dividend, remuneration for your social mandate and benefits.

Dividends

At the end of the accounting year, at the time of approval of the accounts, the general meeting determines whether or not there will be a dividend distribution.

This distribution depends on the profits made by the business and its needs.

Dividends correspond to the profits distributed to the partners of the business.

The executive officer may therefore receive dividends that will be calculated based on the number of shares he holds.

When the director receives dividends, he must report.

They taxed in the category of income from movable capital

or one lump sum to 30%,
option at Income tax scale.

It is important to compare the 2 tax methods based on the amount of dividends received to choose the most favourable option.

Remuneration

He exercises social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, which is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
By the Board of Directors of the business. The ruler cannot decide alone. It shall be put to a vote in which he has the right to participate. On the other hand, we have to be careful, when there is a majority, that this vote is not a abuse of majority.

It exists 3 Shapes possible compensation which are:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Benefits

Director General cannot grant himself benefits without the agreement of the directors business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is imposed on the business tax, the remuneration is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

He status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled.

Minority or equal shareholder

What is a minority or egalitarian shareholder managing director?

The Director General shall minority when less than50% actions of the business.

The Director General shall egalitarian when 50% actions of the business.

As general manager of the shareholder, he has the possibility to accumulate several remuneration. It can accumulate dividend, remuneration, remuneration for employment and benefits.

Dividends

At the end of the accounting year, at the time of approval of the accounts, the general meeting determines whether or not there will be a dividend distribution.

This distribution depends on the profits made by the business and its needs.

Dividends correspond to the profits distributed to the partners of the business.

The executive officer may therefore receive dividends that will be calculated based on the number of shares he holds.

When the director receives dividends, he must report.

They taxed in the category of income from movable capital

or one lump sum to 30%,
option at Income tax scale.

It is important to compare the 2 tax methods based on the amount of dividends received to choose the most favourable option.

Remuneration

The Director General of a business shall social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, which is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
By the Board of Directors of the business. The ruler cannot decide alone. It shall be put to a vote in which he has the right to participate.

It exists 3 Shapes possible compensation:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business. (history of profit sharing)
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Remuneration of employment contract

He can combine his social mandate with a employment contract if:

For the employment contract: it must match technical work
There must be a subordination link between director and shareholders

Benefits

Director General cannot grant himself benefits without the agreement of the directors business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is imposed on the business tax, the remuneration is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The leader status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled.

He may be eligible for unemployment insurance under his employment contract if he has one.

Non-shareholder Managing Director

What is a non-shareholder managing director?

The Managing Director shall not be a shareholder if he does not hold shares in the business.

As a non-shareholder managing director, he has the opportunity to earn several remuneration. It can accumulate remuneration for his or her social mandate, remuneration for employment and benefits.

Remuneration of social mandate

The Director General of a business shall social mandate which may free or paid.

The choice remuneration and amount under the social mandate may be determined by one of the following ways:

In articles, which is rare. Remuneration may evolve, the fact that it is included in the statutes makes its evolution more difficult.
By the Board of Directors of the business

It exists 3 Shapes possible compensation:

Fixed pay (fixed processing): the amount of compensation is determined and it is not supposed to move. It can also be set against the salary of an employee of a defined hierarchical level. This amount is equal to x times the salary of this employee.
Proportional pay (proportional treatment): the amount of the remuneration is proportional to the profits or turnover of the business.
Fixed and proportional remuneration : part is fixed and determined. The other part varies depending on the profits or turnover of the business.

Remuneration of employment contract

He can combine his social mandate with a employment contract if:

For the employment contract: it must match technical work
There must be a subordination link between director and shareholders

Benefits

Director General cannot grant himself benefits without the agreement of the directors business.

In addition to such remuneration, benefits :

Benefits in kind : housing, car,...
Exceptional Gratiratification year-end
Special allowance of retirement and supplementary retirement for the spouse

Tax and social remuneration schemes

Executive compensation is deductible of the benefits of the business if actual work and that it is excessive relative to the business' financial capacity.

How this remuneration is taxed depends on how the business is taxed.

If the business is imposed on the business tax, the remuneration is income tax in the salary and wages category. A standard deduction 10% or actual professional expenses are applied.
On the other hand, if the business is taxed on income tax, the remuneration is taxed on income tax and he must indicate the amount of his income on his non-wage income tax return in the corresponding box (BIC or BNC).

The leader status of assimilated employee, enabling it to benefit from general system of employee protection.

He pays contributions based on his remuneration.

On the other hand, he does not contribute for unemployment insurance to which he is not entitled.

He may be eligible for unemployment insurance under his employment contract if he has one.

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Social Security Code: Articles L311-1 to L311-11Majority management status of an LLC
Trade Code: Articles L225-17 to L225-56Compensation for SA officers (Articles L225-47 to L225-53)
Trade Code: Articles L223-1 to L223-43SARL
Trade Code: Articles L221-1 to L225-270SA
Trade Code: Articles L227-1 to L227-20SAS