Salary vs Dividend Calculator (6/7 Refund)
Compare director salary against a 6/7-refunded dividend at any profit level, including personal income tax, Class 1 SSC on salary, and the true ~5% effective corporate rate.
Salary / dividend split curve
| Salary | Dividend | Net-in-pocket |
|---|---|---|
| €0 | €65,000 | €60,000 |
| €5,000 | €61,750 | €61,500 |
| €10,000 | €58,500 | €63,000 |
| €15,000 | €55,250 | €64,050 |
| €20,000 | €52,000 | €64,400 |
| €25,000 | €48,750 | €64,650 |
| €30,000 | €45,500 | €64,992 |
| €35,000 | €42,250 | €65,742 |
| €40,000 | €39,000 | €66,492 |
| €45,000 | €35,750 | €67,242 |
| €50,000 | €32,500 | €67,992 |
| €55,000 | €29,250 | €68,742 |
| €60,000 | €26,000 | €69,492 |
| €65,000 | €22,750 | €69,742 |
| €70,000 | €19,500 | €69,992 |
| €75,000 | €16,250 | €70,242 |
| €80,000 | €13,000 | €70,492 |
| €85,000 | €9,750 | €70,742 |
| €90,000 | €6,500 | €70,992 |
| €95,000 | €3,250 | €71,242 |
| €100,000 | €0 | €71,492 |
Salary vs 6/7-Refunded Dividend from a Malta Company
Directors of a Malta trading company usually have a choice: pay themselves a salary (taxed as ordinary employment income, plus Class 1 SSC, but deductible against the company's 35% corporate tax) or take a dividend out of already-taxed profits and claim the 6/7 refund (bringing the company-level cost down to a net 5%, but with no further deduction against corporate tax). Which is more efficient depends on the profit level, the director's personal tax band, and whether the SSC contribution has value to them (for example, building state pension entitlement).
This calculator compares both routes side by side for a given profit figure using Malta's 2026 income tax bands, the 35% corporate rate, the 6/7 trading-income refund, and Class 1 SSC on the salary leg — a combination no existing Malta calculator currently models together.
How to use this calculator
- Enter the company's pre-tax trading profit available to extract
- The calculator models Route A: paying it out as director salary (deductible for the company, taxed personally at 2026 income tax bands, plus Class 1 SSC)
- It models Route B: leaving it in the company (taxed at 35%), distributing it as a dividend, and claiming the 6/7 refund (net company-level cost ≈5%), then applying personal tax on the net dividend received
- Compare the two routes' combined personal-plus-corporate tax cost at your entered profit level
