Management contracts are a clever mechanism for sharing the burden of managing an organization. The process transfers some operational responsibilities into the hands of a management company – an organization that is expert in the particular field. The management company receives some remuneration while ensuring that the function is performed to the highest standards. The management contract is also more attractive to Werk B.V. and its managing director in several respects. Werk B.V. does not have to pay social security contributions or social security contributions. The manager (and by this we mean the natural person and/or the DGA) only pays income tax on the salary he receives from his holding company/management B.V. In addition, the manager and the holding company/management B.V. must pay dividend tax on the profits distributed by the holding company or management B.V.

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