Proposal on the appropriation of profits
GEA Group Aktiengesellschaft’s annual financial statements in accordance with the HGB report net income for the fiscal year of EUR 284.5 million. Of this sum, an amount of EUR 131.0 million was deposited into the other revenue reserves. The Executive Board and Supervisory Board will propose to the Annual General Meeting to pay a dividend of EUR 0.85 per dividend-bearing share (180,492,172; previous year: likewise 180,492,172 shares) to shareholders from net retained profits of EUR 154.2 million and to carry forward the remaining net retained profits of EUR 0.8 million to new account.
The dividend will be paid from the contribution account for tax purposes (section 27 of the Körperschaftsteuergesetz (KStG – German Corporate Income Tax Act)) and therefore without deduction of investment income tax and the solidarity surcharge. In the case of shareholders in Germany, the dividend is not subject to current taxation in the year of payment. The general opinion of the German tax authorities (see also the Federal Ministry of Finance (BMF) circular dated January 18, 2016, para. 92) is that the payment of dividends from the contribution account for tax purposes constitutes a repayment of shareholder contributions, which results in a retrospective reduction in the cost of the shares. This can lead to the imposition of higher capital gains taxes if the shares are sold at a later date.