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.
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|
||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.