Salary, dividends or shareholder loan – are You making Your decisions in a tax-efficient way?
For small and medium-sized entrepreneurs operating through a limited company, withdrawing funds from the company is often done without comprehensive tax planning. Salary, dividends and shareholder loans are frequently taken in an ad-hoc manner, without analysing which combination would be the most tax-efficient and at the same time safe from a tax-risk perspective.
As a result, many entrepreneurs pay unnecessarily high taxes each year or unknowingly expose themselves to tax risks, such as the risk of reclassification as hidden dividend distribution.
Our tax planning service brings clarity and structure to this situation.
What does the tax planning service include?
We have developed an individual tax planning service that analyses and optimises the withdrawal of funds from a limited company as a whole.
Typically, funds are withdrawn from a limited company in three forms:
1) Salary
In our service, we
- take into account state income tax, municipal tax, possible church tax, health insurance contributions and unemployment insurance contributions payable by You, and
- assess the market-based level of salary and the related risk of hidden dividend distribution (PE risk).
2) Dividends
In our service, we
- take into account the company’s distributable equity, the amount of tax-favoured dividends available, the taxable portion of dividends and the applicable capital income tax rate, and
- analyse the amount of dividends paid and their tax impact compared to salary payments.
3) Shareholder loan
In our service, we
- take into account any shareholder loan withdrawn by You and the capital income tax consequences if the loan is not repaid by the balance-sheet date, and
- assess the impact of the shareholder loan on total taxation and related tax risks, including the risk of hidden dividends.
Graphical optimisation model – the key strength of the service
At the core of our service is a graphical optimisation model, through which we
- compare the total effective tax rate of different withdrawal strategies,
- calculate, for several alternative scenarios, gross salary, dividends, shareholder loans, taxes and net amounts withdrawn,
- present the results in a clear graphical format,
- identify the most tax-efficient withdrawal point, where tax risks are under control, and
- utilise a separate PE-risk indicator that warns of a salary level that may be too low relative to dividends.
With this service, You no longer need to guess whether Your chosen solution is tax-efficient.
Who is the service for?
The service is particularly suitable for
- small entrepreneurs who conduct their business through a limited company,
- especially entrepreneurs with an immigrant background for whom the Finnish tax system is difficult to understand as a whole – as our service is available in Finnish, Russian, English and Swedish, and
- entrepreneurs who wish to withdraw funds from their company in a tax-efficient manner with tax risks properly managed.
Service delivery
We request company-specific and personal background information from You in advance for the analysis.
The actual consultation takes place either on-site or remotely and typically lasts about one hour.
Any special situations or additional clarification needs identified during the consultation are agreed upon and billed separately.
Benefits for You as an entrepreneur
- better understanding of the tax effects of withdrawing funds,
- the possibility to reduce the total amount of taxes paid, and
- management of the risk of hidden dividend distribution (PE risk).
What does the service cost – and why?
The price of the tax planning service is EUR 450 + VAT 25.5%.
The price includes:
- review of the background information provided by You,
- a comprehensive analysis of fund withdrawals (salary, dividends, shareholder loans),
- a graphical optimisation model and comparison of alternative strategies,
- assessment of hidden dividend tax risks,
- approximately one hour of expert consultation, and
- a clear and well-reasoned recommendation for the overall withdrawal strategy.
Additional consultation:
EUR 150 + VAT 25.5% per hour. All additional work is always agreed in advance.
Legal notice and limitation of liability
The tax planning service is based on applicable legislation, guidance issued by the Finnish Tax Administration and established tax practice at the time the service is provided.
However, the service does not replace an individual tax decision issued by the Finnish Tax Administration.
The outcome of the service may be affected, among other things, by
- incorrect or incomplete accounting data of the company,
- errors or omissions in Your other taxable income, and
- subsequent changes in tax interpretations or administrative guidelines.
NordGuide Oy is not responsible for tax decisions or tax consequences resulting from the above factors.
Any tax-related interpretative disputes shall be resolved through the normal tax adjustment and appeal procedures.