Dividend is adopted by the company's general meeting and is taxable, if not tax exempt, at the time of the general meeting even though the dividend is paid out later.
The tax authority has stated that taxation of dividends in 2020 can be avoided if the dividend decision is reversed and the following conditions are met;
- The reversal must be made before the payment is completed and at the latest before yearend 2020
- The reversal must be due to measures the company take due to the corona pandemic to secure required equity and liquidity
- The reversal decision must be approved by the competent body and valid under company law
If you need any advice or assistance in this regard, please feel free to contact us.