Tax on dividends
Some sub-funds can pay out dividends – in cash or in units, as an extra income for their investors.
The law "On Personal Income Tax" requires that starting from 1 January 2010 the dividends that are paid out for publicly traded stocks, must be imposed with the tax on the day of earning the income, i.e. when the dividend is paid out. The personal income tax rate on paid out dividends is 10 %.
Tax administration
Danske Banka calculates and withholds the tax on dividends that are paid out to its customers starting from 1 January 2010.
In Financial Instrument Money account customer receives dividends where the tax is withheld already.
Danske Banka transfers the tax to the state budget till 5th date of the next month. Our customers as an investors do not need to perform any additional activities in order to pay the tax on dividends.
* The explanation mentioned above is only informative and doesn’t not provide the tax administration advice. For more information about personal income tax, please consult with the State Revenue Service or your tax consultant.