Term · BV & DGA
Management fee
The fee a holding company charges the operating company for the DGA's work as director. The holding sends an invoice for it, usually monthly.
If the DGA is employed by the holding, the holding pays the salary and recharges the cost to the operating company through the management fee. Put the arrangements in a management agreement.
The holding charges VAT on the management fee, unless the BVs form a VAT fiscal unity. The fee must be at arm's length: in line with the work provided.