Dividends

Dividend pay-out in 2019

The Supervisory Council of AS Tallinna Vesi proposes a dividend pay-out of 0.75 euros per share. The proposal will be voted upon at the next annual general meeting on 30 May 2019.

According to the amendment to the Income Tax Act, effective since 1 January 2018, at a company level, an income tax rate of 14% (14/86 of the net amount) shall be charged on the share of dividends, which is smaller than or equal to the previous three calendar years average of the Company’s profit distributions taxed in Estonia. An income tax rate of 20% (20/80 of the net amount) shall be charged on the remainder of the dividend pay-out. Pursuant to the law, a lower tax rate shall be applied in 2019 to 1/3 of the profits distributed in 2018, on which a resident company has paid income tax.

Consequently, a lower income tax rate (14%) is applicable to 14.56% of the dividend pay-out and an income tax rate of 20% is applicable to 85.44% of the dividend pay-out.

According to the clauses 41 (7²) and 43 (1) (1¹) of the Income Tax Act, the Company is required to withhold 7% of income tax on the dividends paid to natural persons provided that such dividend has been taxed with a tax rate of 14%. This also applies to a shareholder who is a natural person and keeps the shares on an investment account.

The shareholders who are natural persons shall receive the dividend as a net amount, from which the income tax has already been withheld in full.

The more detailed overview of the amount of the receivable dividends can be found here.

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AS Tallinna Vesi’s dividend policy is to deliver the real increase in dividends y-o-y.

NET PROFIT DIVIDENDS PAID PER A-SHARE
 DIVIDEND PAYOUT RATIO(%)
 DIVIDENDS PER A-SHARE
  million EEK thousand EUR million EEK thousand EUR EEK EUR
2002 146 9 343 45 2 876 31 2,25 0,14
2003 105 6 681 75 4 793 72 3,75 0,24
2004 173 11 054 112 7 158 65 5,6 0,36
2005 174 11 143 157 10 034 90 7,85 0,50
2006 248 15 853 196 12 527 79 9,8 0,63
2007 278 17 757 249 15 914 90 12,45 0,80
2008 296 18 916 230 14 700 78 11,5 0,73
2009 340 21 726 500 31 956 147 25 1,60
2010 257 16 405 250 16 000 97,5 12,5 0,80
2011 21 513 16 800 78,1 0,84
2012 22 599 17 400 77,0 0,87
2013 19 936 18 000 90,3 0,90
2014 17 943 18 000 100,3 0,90
2015 19 858 18 000 90,6 0,90
2016 18 390 10 800 58,7 0,54
2017
 7 211 7 200 99,9 0,36

 

*Dividend payout ratio = (paid dividends/net profit)*100

The share capital of the Company consists of 20 million A shares and 1 preference B share

Owner of the B-share is entitled to the dividend of EUR 600 per share per annum.

Dividend for the reporting period are paid out on the year following the reporting period.