Articles on: Annual Reports
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How to Distribute Dividends?

When Can I Distribute Dividends?



Dividends can only be distributed after we prepare and submit the annual report, and only if the annual report shows profit and dividends were declared by the business owners.

Once the annual report is submitted, dividends can be distributed up to the maximum specified.

How Many Taxes Do We Pay?



Starting from January 1, 2025, the dividend tax rate will be 22%.

For example, if the company wishes to distribute €10,000 in gross dividends, a 22% tax will apply — that is, €2,200. The owner will receive a net amount of €7,800.

Who Receives Dividends?



They must be distributed equally to the shareholders (not the board members). So, for example, if a company has two shareholders, John, 20% of shares, and Anne, 80%, and the business distributes 5000 euros in dividends, 1000€ will go to John, and 4000€ will go to Anne.

How to Distribute Them?



The distribution must be made from the corporate bank account to an account owned directly by the shareholder (not another company or another person) by that amount. The concept must be "dividends payment."

The dividends can be distributed once, only after the annual report is submitted, and if the result of the annual report was profit (not losses). For example, let's suppose that the previous company has 5000 euros in profit after the annual report. In that case, it can distribute initially up to 5000 euros after the annual report is submitted (1000 will go to John and 4000 to Anne).

Updated on: 09/04/2025

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