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Then we want to expose a problem that must be considered in relation to a situation that occurs easily in small businesses.

I am an administrator and manager
According to Treasury, when a company manager and the manager are the same person, the manager functions are subsumed within the Administrator. But the truth is that this is very debatable …

Working in-house
Two counts. You are an administrator of your company and conducts its daily work on it. The tax treatment applies to the remuneration received for these items is as follows:
. The remuneration received by the manager to be considered a deductible expense for the company, and subjected to a variable retention, like other workers payrolls.
. Not receive remuneration for being a manager, because in this position your business is free. Attention! If you would perceive remuneration for this reason, they would be subject to a withholding tax of 42% fixed, and only be deductible if the statutes of the company estableciesen the remunerative nature of the position.
Treasury says … Well, in a recent consultation, the Treasury believes that the activities of a manager or a CEO are encompassed within the duties of an administrator. Attention! From there, understands that all remuneration perceived by developing the functions of manager administrator salaries are considered, with the following (and surprising) consequences:
. If the statutes say that the position of director is free (or do not say anything to respect), or retribution as the administrator or as a manager’s salary will be deductible expense.
. Both salaries, wages also as manager-retention is subject to 42% fixed.

It deductible expense
Arguments. Well, this new approach is very debatable. Thus, compared to the non-deductibility of wages as manager:
. By law, all necessary expenses to revenue (which would be the salary of a manager who buys and sells, who directs the staff, etc.) Are deductible.
. When the statutes governing the remuneration of the administrator, they do regarding commercial functions inherent in that office (sign the accounts, convene shareholder meetings …), but not in relation to other functions that can develop in the affected company ( functions that could exert even if only administrator).
. As manager functions other than administrator, must be paid regardless of what the statutes say. Aim. If your company is not rewarded, the Treasury will come later, and, citing the regulations transactions, tell remuneration to be fixed, regardless of what the statutes set.
Prudence. However, be cautious and set in the statutes to the position of director is remunerated. Also indicate the specific amount to be paid by all concepts (also manager) will be decided each year the board of trustees.

Retention
Related. The same arguments are used for retention. The fixed rate of 42% should be applied only to the remuneration derived from the commercial functions of the administrator, but not on the remuneration it receives for other functions, as a manager, the company develops.

Conclusion
If your bylaws state that the position of administrator is free, the Inspectorate may consider that his salary as manager is not deductible. Although in any case, there are strong arguments against the opinion of the Treasury, would be complicated and expensive so we recommend refute amend the statutes, and that is not included in your payroll office administrator or even prevent the manager position but may include the position of production manager, or director of administration, etc …

Premia de Mar, March 2013

GAFIC, SLP
Tax, Accounting and Labor des 1985
OpenERP experts

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