When a company makes a profit or that it has distributable funds, shareholders may decide to allocate all or a part by making a distribution of dividendsThis folder provides you with explanations on the functioning of the distribution of dividends, payment of dividends, taxation, as well as the system of advances on dividends. For there to be a dividend distribution, it is necessary that the competent body decides it in advance. Depending on the legal form of the company, the procedure to be followed will be different, but it will be, in the end, the general assembly of partners or shareholders for a vote on the distribution of dividends.
The distribution can be decided at the occasion of the annual meeting (the"meeting"approval of the accounts of the fiscal year) or at a subsequent meeting (special distribution).
Once it has been decided to pay dividends, the company must pay the shareholders in the neu fmois after the close of the fiscal year. The dividend is normally paid in cash but it is also possible, under certain conditions, to pay in shares or in kind (goods, materials). To be able to distribute a dividend, the company must have distributable reserves.
The amount of money that can be put in distribution to the partners or shareholders are the following: When a company makes a profit, it is not necessarily distributable: She may distribute it provided that there are no more losses prior to auditing, the legal reserve must be equipped (up to the threshold of ten of the social capital and any statutory reserves required to be also.
Finally, to distribute a dividend, the setting-up costs, capital increase costs and the research and development costs must be amortized.
However, if the free reserves of an amount at least equal to the unamortized portion of these fees and expenses are accrued, it will be possible to distribute dividends. The distribution of an interim dividend is to anticipate the profit that will be realized on the exercise. It is, therefore, an operation quite risky requires a formalism quite heavy: The taxation of dividends depends on the quality of the partner (physical person or a legal person). For an individual, a levy one-time lump sum of thirty is applied on dividends An option for the taxation of dividends to the progressive scale of income tax is, however, possible. If the partner or shareholder is a corporation, dividends that it receives will be directly taxed for it. To obtain a quick response, we advise you to ask your questions on our chat (bottom right) You can at any time request the correction or deletion of your personal information: contact Us.
