How profits reach shareholders
The profit remaining after tax can be distributed to shareholders as dividends, but with precise rules: only if there is profit, with a dividend tax withheld and with payment deadlines. For foreign shareholders the double taxation treaty applies.
What we do for you
- Checking the legal distribution conditions;
- Computing and withholding the dividend tax;
- Preparing the distribution documents;
- Applying the reduced treaty rate for foreign shareholders;
- Declaring and paying the tax on time;
- Advice on quarterly distributions.
Why it matters
A wrongly made distribution — without profit, without documents or with wrongly computed tax — attracts penalties. For shareholders in Germany or Austria, applying the treaty reduces the withheld tax.
Frequently asked questions
A withholding rate applies to distributed dividends. For foreign shareholders, the rate can be reduced through the double taxation treaty.
Only if there is distributable profit, respecting the legal conditions. Quarterly distributions are also possible, with year-end reconciliation.
By applying the treaty with a residence certificate, the withheld rate can be reduced. We manage the entire documentation.