Owner’s salary
The owner’s salary is the compensation the proprietor takes for their work in their own business; in a sole proprietorship or partnership it is not salary but a private withdrawal, whereas in a GmbH or AG the owner is an employee and draws a salary.
Definition
The difference is not formal. In a corporation the salary is an expense, reduces profit and is subject to contributions; in a sole proprietorship the withdrawal does not reduce profit, and contributions are levied on the business result.
For tax purposes both directions are watched: a conspicuously low salary alongside distributed dividends — salary conversion — and a conspicuously high salary that shifts profit. The authorities correct where the compensation is not at arm’s length.
Where to read it
What the software must be able to do
For a sole proprietorship this means: no payroll module for the owner, but a private account through which withdrawals and contributions run. For a GmbH the reverse: full payroll, even with a single employee.
Checked Aug 2026
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