Can You Receive Both Director’s Fees and Dividends?
If You Are Both a Director and a Shareholder, Can You Receive Both Director’s Fees and Dividends?
Basic Conclusion
- If a person is both a company director and shareholder, they can receive both Director’s Fees and Dividends
Difference in Roles
- A director and a shareholder are two different roles
- Therefore, the nature of income received is also different
Different Sources of Income
- Director’s Fees:
- Payment received for acting as a company director
- Dividends:
- Profit distribution received as a company shareholder
Key Reason
- Since both income types come from different sources and purposes
- The same person is allowed to receive both Director’s Fees and Dividends
Tax Differences (Key Point)
- Both are treated differently for tax purposes
- They must be declared and taxed according to their respective nature