What happens if I pay myself less than the minimum?

The whole profit is taxed at the standard rate, not just the part above the reduced-rate slice. Paying yourself the extra salary is usually cheaper than losing the reduced rate, which is exactly the trade-off the optimizer prices.

Does the reduced rate apply to my whole profit?

No — only to the first slice, shown in the rate table above. Profit beyond it is taxed at the standard rate, which is why the effective rate sits between the two.

Are there other conditions besides the salary?

Yes. The reduced rate is for small companies and excludes, among others, companies holding large participations and those paying out most of their profit as dividends in their first years. Confirm your case with your accountant.

How much corporate tax does your company pay?

The reduced rate is conditional on paying yourself a high enough remuneration. Enter your profit and salary to see which rate you actually get.

Your numbers

Taxable profit

€

After expenses and after your own remuneration.

Director’s remuneration

€

Gross, for the year — this is what the rate test looks at.

Your answer

Corporate tax

€16,000

Effective rate: 20,0%
Profit after tax: €64,000
Reduced rate applies: Yes

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On a taxable profit of €80,000 with a director’s remuneration of €50,000, corporate tax comes to €16,000 — an effective 20,0%, leaving €64,000 after tax. Reduced rate applies: Yes.

How this is calculated

A small company pays the reduced rate on the first slice of profit and the standard rate above it — but only if it pays at least one director the statutory minimum remuneration. Miss that threshold and the standard rate applies to the whole profit, which is usually a far bigger loss than the salary you avoided. There is an exception when the profit itself is lower than the required salary. Not modelled here: the cap on how much of that remuneration may be benefits in kind, and the separate assessment on insufficient remuneration.

Rates and thresholds, tax year 2026

Reduced rate	20%
Reduced rate up to	€100,000
Standard rate	25%
Minimum director’s remuneration	€50,000

Rule set verified as of 2026-07-20

Questions people ask

What happens if I pay myself less than the minimum?: The whole profit is taxed at the standard rate, not just the part above the reduced-rate slice. Paying yourself the extra salary is usually cheaper than losing the reduced rate, which is exactly the trade-off the optimizer prices.
Does the reduced rate apply to my whole profit?: No — only to the first slice, shown in the rate table above. Profit beyond it is taxed at the standard rate, which is why the effective rate sits between the two.
Are there other conditions besides the salary?: Yes. The reduced rate is for small companies and excludes, among others, companies holding large participations and those paying out most of their profit as dividends in their first years. Confirm your case with your accountant.

This article is general information for a one-person company (BV/SRL), not tax advice. Rules and figures change — confirm your situation with your accountant before acting.

Fiscalance Editorial · Updated 5 August 2026

Terms used here

Corporate taxCorporate tax rateTaxable profitAfter-tax profit

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