Payments to Company Owners: Dividend or Another Type of Income?

Company owners can withdraw funds from their businesses in several ways, each with different tax implications.

Common forms of payments include:

  • dividends,

  • director’s salary,

  • reimbursement of expenses,

  • loans to the owner.

If a payment is not properly documented or classified, tax authorities may reclassify it as another form of income.

Such situations are regularly reviewed during inspections by FURS.

➡️ Practical advice: The tax treatment of owner payouts should be planned in advance.

CTA:
👉 Before making owner payments, we can review the most tax-efficient structure.