In which cases the co-working deduction is more advantageous than the actual labor remuneration can not be said in advance. This is partly dependent on the level of the profit and the level of the work reward to be awarded. In general it can be said that the co-working deduction is more advantageous at lower profit levels.
One possibility is that an employment contract is entered into between the partners. However, this variant has the added bonus of having to pay wage administration and withholding payroll tax.
Partnership / VOF
The cooperating partner can, under certain conditions, participate as a full-fledged entrepreneur in the business. You then speak of a male / female firm in which the partner has his own share of the profit and business capital.
This variant will in most cases be the most advantageous because both entrepreneurs can make use of the all fiscal entrepreneur facilities. That is why this variant has more conditions.
What is the correct choice?
In order to make the right choice, a comparative calculation will have to be made.
In addition, the last variant will have to look at the tax conditions
If you would like to know more about rewarding your collaborating partner or would like advice on tax matters, please contact Visee Finance. You can also use the contact form on this site or by using the “Call me back” option . We can be reached by phone during office hours by calling +31 (0) 36 5304248 .
The DGA is required to base the AOW franchise on the unmarried AOW instead of the self-employed AOW under Article 10c of the Wage Tax Implementation Decree. (AOW franchise 2013 based on 10/7 unmarried AOW is € 19.301)
If you want to retire earlier, you can do that but then you have to deal with other accrual percentages. Below two examples
65 years 2% for final pay and average pay 2.25%
60 years 1.38% for final pay and for average pay 1.55%
From 2014, the accrual percentages will change considerably.
In a defined contribution scheme the determination of the factor A works differently. There the premium paid is decisive for the growth. The available premium is then multiplied by an age-dependent factor. This factor is included in Article 15 Implementation Decree on income tax. Below you will find the table with the factors that apply to the years from 2013.
For more information about pension calculations in own management or tax advice, please contact us without obligation. You can use the contact form on this website or by using the “Call me back” option. We can also be reached by phone during office hours via telephone number +31 36 5304248.