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LAST OPPORTUNITY TO PAY LESS TAXES FOR DIVIDENDS

The changes in the New Fiscal Code are making 2016 the best year for withdrawing dividends. The dividend tax was reduced from 16% to 5%. It is possible to benefit of this opportunity only in 2016.

If you haven`t already did it, you can still benefit from this tax relief only in December this year.

The only condition that must be fulfilled in order to pay only taxes rate of 5% is that the shareholder must obtain also other income for which he already pays the health insurance contribution. Therefore:

  • If the shareholder is also an employee, regardless of the company in which he has this status, the tax on dividends will be only 5%.
  • If the shareholder doesn't`t have another income, then for the dividends received from the company he will pay 5% dividend tax + 5.5% health contribution (CASS), making a total of 10.5%.

In 2016, the above conditions are available for all dividends related to the previous years’s profit (2015, 2014, 2013 etc).

Starting with 2017, regardless of whether the shareholders or the stockholders obtain other income for which they are paying for CASS, as in the example above, the tax on dividends will be 5% to which 5.5% for CASS will be added, in other words, 10,5% in total.

 

 

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