Is an attendance fee or a dividend more advantageous?

There is no single answer; it depends on the amount and on whether the company is profitable. An attendance fee is deductible and lowers the corporate base but is taxed as employment income. A dividend comes out of after-tax profit, so the earnings are taxed twice. At low and mid amounts the attendance fee usually wins; at higher amounts the picture can change.

Which one if the company is loss-making?

In a loss-making company the deductibility of an attendance fee produces no saving today, because there is no base to reduce. A dividend is not legally available without distributable profit. The question then is not which is cheaper but what the payment actually is.

Is a shareholders’ resolution required for an attendance fee?

The attendance fee payable to board members has to be set out in the articles or by a shareholders’ resolution. A payment made without that basis becomes arguable both as a deduction and in relations between shareholders.

Can both be used together?

Yes, and it is a common choice. A regular attendance fee through the year keeps cash flow steady, and a dividend is distributed at year end depending on profit. This mixed arrangement usually beats committing to one route.

Calculator

Attendance Fee or Dividend?

An attendance fee is deductible for the company and taxed as a wage; a dividend bears corporate tax first, then withholding. Because half the dividend is exempt and a declaration threshold applies, the answer changes with the amount. Compare both routes on the same gross figure.

Gross amount you want to take out

The untaxed company profit you intend to allocate to yourself.

Your other wage income in the same year

Enter any salary you draw from the company. Attendance fees count as wages, so the tariff is cumulative.

Your other declarable income

Rent, investment income and similar. Used for the dividend declaration threshold.

Corporate tax

Dividend withholding

Stamp duty

Attendance fee

Gross attendance fee: —
Income tax withheld: —
Stamp duty: —
Net received: —
Effective burden: —

Dividend

Corporate tax: —
Distributable: —
Withholding: —
Annual return: —
Additional tax on declaration: —
Net received: —
Effective burden: —

Half of a dividend from a resident company is exempt (ITL 22/2). The 2026 declaration threshold is TRY 400,000; above it, the withholding is credited against the computed tax.

This calculator produces an estimate for general information only and is not a substitute for professional advice. Rates are pre-set to 2026 legislation and can be edited. Which rule actually governs your situation needs separate assessment.

Have the result sent to you

Get this table by email, with my read on it

The figures you entered and the result are attached to the message; I look at them and write back what they mean for you. No appointment needed.

How the two routes differ mechanically

An attendance fee is a deductible cost for the company. It reduces the corporate tax base. In exchange the payment counts as employment income and carries withholding and social security obligations.

A dividend is paid from after-tax profit. The company has already paid corporate tax, and withholding is applied again at distribution. The same earnings are taxed at two stages.

That is the core of the comparison: an attendance fee lowers tax on the company side and raises it on the individual side; a dividend does the reverse. Which is cheaper overall depends on the amount and on whether the company is profitable. The calculator puts the two totals side by side.

What the number assumes

The calculator assumes the company is profitable. In a loss-making company the deductibility of an attendance fee produces no tax saving today, because there is no base to reduce. The comparison loses its meaning there.

The dividend side assumes distributable profit exists. If prior-year losses are uncovered or statutory reserve requirements are unmet, a distribution is not legally possible; the number may appear but the route is closed.

The social security side also depends on the individual’s existing status. A shareholder already insured through another job and one whose only income is this company do not get the same result.

Three things the number does not say

The form is not a free choice. The nature of the payment follows the facts. What a shareholder actually running the business receives is employment income whatever it is called. Picking the tax-efficient label without matching the facts creates reclassification risk.

An attendance fee needs a shareholders’ resolution. Because it is paid for board membership, its basis has to be established by a resolution. A payment made without one becomes arguable as a deduction.

They are not mutually exclusive. In practice a mixed arrangement often works better: a regular attendance fee through the year, and a dividend at year end depending on profit. The calculator shows the two extremes; the decision usually sits between them.

Frequently asked

Is an attendance fee or a dividend more advantageous?: There is no single answer; it depends on the amount and on whether the company is profitable. An attendance fee is deductible and lowers the corporate base but is taxed as employment income. A dividend comes out of after-tax profit, so the earnings are taxed twice. At low and mid amounts the attendance fee usually wins; at higher amounts the picture can change.
Which one if the company is loss-making?: In a loss-making company the deductibility of an attendance fee produces no saving today, because there is no base to reduce. A dividend is not legally available without distributable profit. The question then is not which is cheaper but what the payment actually is.
Is a shareholders’ resolution required for an attendance fee?: The attendance fee payable to board members has to be set out in the articles or by a shareholders’ resolution. A payment made without that basis becomes arguable both as a deduction and in relations between shareholders.
Can both be used together?: Yes, and it is a common choice. A regular attendance fee through the year keeps cash flow steady, and a dividend is distributed at year end depending on profit. This mixed arrangement usually beats committing to one route.