Correct. With a BV in the Netherlands, you get immediately the fiscal Calvinism of the Dutch tax office at play. Despite the fact that:
- You work for yourself so you get 100% of the risk
- You have no benefits
- If you are sick you get no pay, unless you make a very expensive work sickness/income insurance
the Dutch tax office, judges that they do not want you
to be in a "too advantageous fiscal position" ...( Not making this up...these are their own words) so, forces you to pay yourself a minimum yearly salary that is updated every year so they can tax you. It is currently at 47,000 EUR per year I believe...and is independently of you making money or not...
the reason they use this salary is for tax purposes. otherwise doing tax fraud would be easy with a BV. by simply not paying yourself a wage and living of the BV instead.
The BV has to pay taxes. And costs have to be business related. Since when living from your own work is considered fraud?
There is a fundamental principle here, and that is the tax office considering that, unlike a permanent employee who cannot be fired and has almost no liability, an entrepreneur, despite taking all the risk and having non of the benefits, is judged that it should be forced into the same tax position. Where is the upside then?
This coming from the same tax office, that has enabled some of the biggest tax dodgers in the planet:
"Netherlands earned €25 mil. from Google's tax avoidance"
"The Netherlands is still one of the world's main tax havens, coming in fourth place on Tax Justice Network's biennial ranking of tax havens. Only the British Virgin Islands, the Cayman Islands and Bermuda scored worse than the Netherlands when it came to tax avoidance."
- You work for yourself so you get 100% of the risk
- You have no benefits
- If you are sick you get no pay, unless you make a very expensive work sickness/income insurance
the Dutch tax office, judges that they do not want you to be in a "too advantageous fiscal position" ...( Not making this up...these are their own words) so, forces you to pay yourself a minimum yearly salary that is updated every year so they can tax you. It is currently at 47,000 EUR per year I believe...and is independently of you making money or not...