Income tax · July 5, 2026 · 2 min read
How to take money out of an s.r.o. with as little tax as possible
The money in a limited liability company (s.r.o.) does not automatically belong to the shareholder – the company is a separate entity. There are several legal ways of getting hold of the profit, and each carries a different burden of tax and contributions. By combining them, you can optimise that burden.
Wage or managing director’s remuneration
If you are employed by your own company or receive remuneration as its managing director, this is a cost to the company that reduces its tax base. On the other hand, social and health insurance contributions are paid on this income, which reduces its overall advantage.
Dividend (share of profit)
A dividend is paid out of profit after tax. No social insurance contributions are paid on it, which makes it attractive when profits are higher. However, it is subject to tax and, in some cases, to health insurance contributions – the details depend on the current rules.
Allowances and company expenses
Travel allowances, meal allowances or the use of company assets are legitimate costs if they relate to the business and are properly documented. This is not “taking out profit” in the true sense, but it does reduce your personal expenses.
A loan to the shareholder
The company can grant the shareholder a loan, but it has to be repaid and is subject to rules (e.g. a usual market rate of interest). It is not a way to “extract” profit permanently.
How to put it all together
The most advantageous option is usually a well-considered mix – part as remuneration (a cost to the company), part as a dividend. The optimal ratio depends on the amount of profit, your situation and the current rates, so it pays to work through the figures with your accountant.
Current figures (2026)
Taxation of dividends 2026
Withholding tax on profit shares (profits from 2025) | 7% |
For 2024 (for comparison) | 10% |
Corporate income tax 2026
Tax base up to €100,000 | 10% |
€100,001–€5,000,000 | 21% |
over €5,000,000 | 24% |
Figures valid for 2026; check the current wording.
Related articles: Taxation of dividends: rates, procedure and common misconceptions, Minimum corporate income tax: who it applies to, Motor vehicle tax: who pays and how much.
Frequently asked questions
Is a dividend always more advantageous than a wage?
Not always. A wage is a cost to the company and reduces its tax, whereas a dividend is paid only out of profit after tax. Which is more advantageous depends on the amount of income and the rates.
When is a dividend paid out?
After the general meeting has approved the financial statements and decided on the distribution of profit, provided the company has made a profit and meets the conditions.
More articles
All articles →
Income tax · July 23, 2026
Personal income tax return: who has to file one
Personal income tax return: find out whether you are required to file one, which income counts and what deadline you need to meet. Clear and to the point. We can help.
Read article →
Income tax · July 21, 2026
Corporate income tax return step by step
Corporate income tax return step by step: what to prepare, how to fill in the form and which deadlines to keep in mind. A practical guide for every limited liability company (s.r.o.). We can help.
Read article →
Income tax · July 19, 2026
Flat-rate expenses vs. actual expenses for sole traders
Flat-rate expenses or actual expenses? We compare when each method pays off for a sole trader and how much tax you will save. Make the right decision. We can help.
Read article →