Salary, pension, dividend: in what order to take money out of your SRL

The four ways out, and what they cost

The director of an SRL has four channels for moving money from the company into their private wealth: remuneration, supplementary pension, the liquidation reserve and the dividend. Each carries a different tax charge, and the order in which you fill them determines the overall cost.

The rule that governs the whole thing is simple to state: first fill what is deductible for the company, then what is taxed at the lowest rate. A deductible expense reduces the corporate income tax base; a dividend is paid out of profit after tax, so it is taxed twice.

The table below gives the order of magnitude for each route. The rates are those in force after the Programme Law of 30 May 2026, which reshuffled the cards between dividends and liquidation.

Step 1: remuneration, and the €50,000 threshold

The reduced corporate income tax rate of 20% on the first €100,000 of profit depends on paying at least €50,000 gross per year in remuneration to a director who is a natural person. Below that, the company is taxed at 25% on all of its profit.

This threshold has been raised from €45,000 to €50,000. That leads to an immediate trade-off calculation: on a profit of €100,000, the gap between the two rates is worth €5,000 in tax. It almost always pays to raise the remuneration to the threshold, even though that remuneration bears progressive personal income tax and social security contributions.

There is one exception at start-up: the minimum remuneration condition does not apply during the first 4 financial years of a newly incorporated company. A young SRL therefore keeps the reduced rate without having to pay €50,000.

Step 2: the IPC, the only deductible way out that escapes personal income tax

Once the remuneration is set, the IPC (individual pension commitment, EIP/IPT) is the most efficient route. The company pays the premium and deducts it from its corporate income tax base; the capital is not taxed at the director's marginal rate but at a separate rate of 10% at statutory pension age, provided the activity has been kept up.

The limit is the 80% rule: the statutory pension plus the supplementary pension may not exceed 80% of the last normal annual remuneration. This rule creates a direct link with the previous step — the higher the remuneration, the higher the deductible IPC premium. The two decisions are taken together, never separately.

Two sources of friction to be aware of: an insurance premium tax of 4.4% payable by the policyholder, and on payout an NIHDI (INAMI/RIZIV) levy of 3.55% plus a solidarity contribution of 0 to 2%. An early payout is taxed at 16.5% instead of 10%.

Remember that the PLCI/VAPZ (free supplementary pension for the self-employed) still takes priority over the IPC, including for a company director: it sits outside the 80% rule, is capped at €4,086.34, and can therefore be freely combined with the IPC.

Step 3: liquidation reserve or dividend, now a draw

Until 2026, the liquidation reserve clearly beat the dividend. The Programme Law of 30 May 2026 brought the two routes so close that they are now level, and this is the most important change of the year for an SRL director.

The VVPRbis dividend goes from 15% to 18% on 1 July 2026. The liquidation reserve under the new regime bears a 10% separate levy when it is set aside, then 9.8% withholding tax after a waiting period cut to 3 years, making 18% in total. Both routes now cost the same.

Three liquidation reserve regimes coexist, and what counts is the closing date of the financial year in which the reserve was created, not the date of distribution. Reserves created in a financial year closed before 31 December 2025 fall under the historic regime: 5 years' waiting, 5% withholding tax, 13.64% total charge — a more favourable rate than today's.

So the deciding factor shifts from the rate to flexibility. The VVPRbis dividend is available with no further lock-up once the waiting period has passed; the liquidation reserve ties up the funds for 3 years but comes out free of withholding tax if the company is actually liquidated. For anyone planning to wind up their SRL at the end of their career, that argument remains decisive.

The order in practice, and what makes it change

For the vast majority of service SRLs, the following order produces the lowest overall cost. It is by no means universal, but it is the starting point from which to reason.

Three situations change it. If your marginal personal income tax rate is already at the top, raising the remuneration above the threshold becomes counterproductive and the balance shifts towards the dividend. If you plan to wind up the company in the medium term, the liquidation reserve regains the edge thanks to its withholding-tax-free exit. If your company is young, the exemption for the first 4 financial years temporarily frees you from the remuneration threshold.

• 1. Director's remuneration up to €50,000: the entry price for the reduced 20% rate.
• 2. PLCI/VAPZ up to its ceiling of €4,086.34: deductible, outside the 80% rule.
• 3. IPC, within the limit of the 80% rule: deductible premium, capital taxed separately.
• 4. Liquidation reserve or VVPRbis dividend at 18%: the choice now depends on your time horizon, no longer on the rate.
• 5. Ordinary dividend at 30%: only for whatever does not fit into any of the previous boxes.

Further reading

The pages on this site that explore each of the points covered here in more depth.

• Home office: which costs can you deduct?Renting part of your home to your SRL: the five-thirds-of-cadastral-income limit.
• Self-employed tax return: the 31 October deadlineWhen and how the director declares their remuneration for personal income tax.
• SRL dividends: VVPRbis and the liquidation reserveThe three regimes in detail, with worked figures for each route.
• The 80% ruleThe ceiling that determines the deductible IPC premium.
• The SRL in practiceIncorporation, obligations and taxation of the most common company form.
• IPC: individual pension commitmentThe deductible way out, and how it is taxed at maturity.
• Switching to a company: from what income?The step before, if you still work as a natural person.

Frequently asked questions