The business salary lets an owner or working partner draw a deductible remuneration. Used well, it organizes withdrawals and optimizes the tax burden.

What is the business salary?

It is the reasonable remuneration that a partner or sole proprietor who actually works in the company can assign themselves, and which the company recognizes as an accepted expense.

Key requirements

Actual and permanent work in the company, payment of social-security contributions, and being subject to the single second-category tax, just like any employee.

The tax advantage

The salary lowers the company's First-Category Tax base and organizes the flow of money to the owner with a known tax treatment, avoiding disorderly withdrawals.

Is it always worthwhile?

Not necessarily. The optimal amount depends on the level of profits, the tax regime (14 A or Pro Pyme) and your personal situation. It must be assessed case by case.

How we help at C&C

We assess whether it suits you, calculate the optimal amount and implement it with full social security and tax compliance. It is part of our consulting and tax planning service.

Keep reading: how to recover VAT with Article 27 bis.

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