Dividends or salary: how do you take more money out of your company?
Enter what the company can spend on you and instantly see your take-home pay as dividends, as salary or as a combination.
The total amount, before any tax or contribution.
The rest of the budget is paid out as dividends.
| MDL / year | Dividends | Salary | Salary + dividends |
|---|---|---|---|
| You take home | 496,320 MDL | 387,484 MDL | 479,315 MDL |
| Taxes and contributions | 103,680 MDL | 212,516 MDL | 120,685 MDL |
| Effective rate | 17.3% | 35.4% | 20.1% |
Show the calculation
- Profit tax (12%)72,000 MDL
- Dividend tax (6%)31,680 MDL
- You take home496,320 MDL
- Gross salary483,871 MDL
- Employer social contributions (24%)116,129 MDL
- Health insurance (9%)43,548 MDL
- Income tax (12%)52,839 MDL
- You take home387,484 MDL
- Gross salary75,600 MDL
- Employer social contributions (24%)18,144 MDL
- Health insurance (9%)6,804 MDL
- Income tax (12%)8,256 MDL
- Profit tax (12%)60,751 MDL
- Dividend tax (6%)26,730 MDL
- You take home479,315 MDL
A salary builds your pension record and gives you sick and maternity pay and health insurance through the employer. Dividends carry no social protection: if you are not employed, you pay for the health insurance policy yourself (12,636 MDL in 2026, or 2,527 MDL if paid by 31 March).
Indicative estimate for 2026, for an LLC under the standard profit tax regime. Dividends can only be paid out of net profit, after the financial statements are approved or as interim (quarterly or half-yearly) dividends based on interim financial statements. VAT, the 4% regime and tax incentives are not included.
Two ways to take money out of an LLC
Dividends
The money first goes through the company's profit tax, then through dividend tax:
- profit tax — 12%, paid by the company
- dividend tax — 6%, withheld by the company when it pays out
- no social contributions and no mandatory health insurance through the company
Salary
Salary is a deductible expense, so no profit tax is due on it. Instead there are:
- employer social contributions — 24% on top of the gross salary
- health insurance — 9%, withheld from the salary
- income tax — 12%, withheld from the salary
The company has 600,000 MDL a year for its owner
The same budget, three ways to pay it out:
- Profit tax (12%)
- 72,000 MDL
- Gross dividends distributed
- 528,000 MDL
- Dividend tax (6%)
- 31,680 MDL
- Net from dividends
- 496,320 MDL
- Annual gross salary (the budget also covers contributions)
- 483,871 MDL
- Contributions and taxes on salary
- 212,516 MDL
- Net from salary
- 387,484 MDL
- Minimum wage (6,300 MDL/month) + the rest as dividends
- 479,315 MDL
Effective rate: 17.3% for dividends versus 35.4% for salary. The difference is paid for with the lack of social protection.
Dividend rules
- Paid only out of net, after-tax profit, by a decision of the members' general meeting or of the sole member.
- Yearly, after the financial statements are approved, or as interim (quarterly or half-yearly) dividends based on interim financial statements (Law 135/2007 art. 39). Dividends are paid in cash within 30 days of the decision unless the meeting sets another term.
- For interim dividends, the company pays in advance 12% of the current-period profit the dividends come from, by the 25th of the month after the payout (Tax Code art. 80¹).
- No dividends may be distributed before contributions are fully paid in, or if the payout would bring net assets below the share capital plus the reserve capital, and none may be paid while the company is or would become insolvent (Law 135/2007 art. 40).
- The 2027 tax policy, passed by Parliament on 22 October 2026, sets dividend tax at 8% on dividends paid out of profit earned from 2027 onwards. Dividends out of earlier profit stay at 6%.
When dividends make sense
- You already have a contribution record or another job with salary and contributions.
- The company has steady profit and you don't need money every month.
- You want a minimum salary for social protection and the rest as dividends.
Figures used in the calculation (2026)
- Profit tax
- 12%
- Dividend tax (resident individuals)
- 6%
- Employer social contributions
- 24%
- Health insurance
- 9%
- Income tax on salary
- 12%
- National minimum wage
- 6,300 MDL
The calculation assumes the standard profit tax regime and a resident individual as the member. Different rules apply under the 4% regime, to IT Park residents or to non-resident members.
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