> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://help.companio.co/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# How to Distribute Dividends After My Annual Report is Submitted

### 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](/en/article/how-to-declare-dividend-distribution-in-the-annual-report-1071ivs/).

Once [the annual report is submitted](/en/article/5-step-annual-report-submission-with-companio-7ff0zf/), dividends can be distributed up to the maximum specified.

### How Many Taxes Do We Pay?

The current dividend tax rate in Estonia is 22%, calculated as **22/78 of the net distributed amount**. This means that for every €100 net paid in dividends, the company must pay approximately €28.2 in corporate tax.

**For example**, if the company wants the shareholder to receive €10,000 net in dividends, it will need to pay €2,820 in corporate tax, for a total cost of €12,820.

### Who Receives Dividends?

Dividends must be distributed proportionally to shareholders according to their ownership percentage. For example, if John owns 20% and Anne owns 80%, and the company distributes €5,000 in dividends, John will receive €1,000 and Anne will receive €4,000.

### How to Distribute Them?

* The distribution must be made from the company’s business bank account directly to a personal account owned by each shareholder (not to another company or individual). The payment must clearly state the purpose: **“dividends payment.”**

* Dividends can be distributed only once the annual report has been submitted and only if the company reported a profit. For example, if the company made €5,000 in profit, it can distribute up to €5,000 in dividends (e.g., €1,000 to John and €4,000 to Anne).