Director Remuneration and Tax Planning

Salary or Dividends? Plan How You Take Income from Your Company

The way you take money from your company can affect your personal tax position, company cash flow, pension planning and long-term financial objectives.

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AMQ helps Irish company directors develop practical remuneration strategies that consider salary, dividends, pension contributions and the financial position of the business.

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Book a Director Tax Review

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Is This You?

• You are unsure whether to take a salary, dividends or a combination of both.

• You have been withdrawing money without a formal remuneration plan.

• Your company is profitable, but you want to retain enough cash for growth.

• You want to consider pension contributions as part of your strategy.

• You are approaching the company’s financial year-end.

• Your personal or business circumstances have changed.

Salary and Dividends Work Differently

Salary is generally processed through payroll and may be deductible when calculating the company’s taxable profit, subject to the relevant conditions.

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Dividends are distributions to shareholders and can only be paid when the company has sufficient distributable reserves. They do not reduce the company’s taxable profits and must be approved and documented correctly.

The best approach depends on your personal income, tax bands, pension plans, company profits and working-capital requirements.