The dividend will be paid from the contribution account for tax purposes (section 27 of the Körperschaftsteuergesetz (KStG – German Corporate Income Tax Act)), meaning that investment income tax and the solidarity surcharge will not be deducted. In the case of shareholders in Germany, the dividend is not subject to current taxation in the year of payment. The generally held opinion is that payment of dividends from the contribution account for tax purposes constitutes a repayment of contributions, which results in a subsequent reduction of the acquisition costs for the shares. This can lead to the imposition of higher capital gains taxes if the sales are sold at a later date.
|Financial Year||Proposed Dividend (Euro per Share)||Dividend Payout Ratio|