Taxation of Payments to The Member of the Board of Directors of Joint-Stock Company

Chairman and the members of the board of directors can be made payments in different names by the joint-stock companies. A member of the board of directors of a company may be a shareholder of this company at the same time. Because of being a shareholder of the company, the member of the board of directors can be paid dividend. It is possible that a member of the board of directors of a company who is at the same time a shareholder of the company, may also be employed as general manager or assistant general manager based on a contract of employment and in return of this employment, wage can be payed. In this case, payment can be made to the relevant person based on the three titles (member of the board of directors/shareholder of the company/employee of the company). Both the payments made to a natural person chairman of the board of directors and a member, being a shareholder and an employee of the company at the same time and taxation of these payments constitute the subject of this study.