Updated for AccRes. This AccRes guide to “How to pay out the dividends?” has been refreshed for the new knowledge base: the practical workflow is kept intact, with added context for AccRes clients and a reminder to check the service interface against the screenshots before following the steps.
Dividend payment conditions
To be eligible to pay out dividends to shareholders, the following conditions must be met:
1) the company must have a profit;
2) the company must have filed the annual report with the Estonian Commercial Register for the period, which profit it is decided to distribute in the form of dividends;
3) the company’s share capital must be contributed and registered;
4) the company must make a decision about paying dividends and put the decision in writing.
Only if these four conditions are met the company has the right to pay out dividends to shareholders.
How to calculate dividends to be paid?
To figure out the maximum net dividends you can pay without creating a loss because of income tax, add up the profit/loss from the balance sheet lines "Eelmiste perioodide jaotamata kasum (kahjum)" and "Aruandeaasta kasum (kahjum)" from the latest annual report submitted to the Estonian Commercial Register and multiply the amount by 0.78. This reflects the 22/78 dividend income tax rate that applies from 2025.
Example:
The sum "Eelmiste perioodide jaotamata kasum (kahjum)" и "Aruandeaasta kasum (kahjum)" is :
103 967 + 93442 = 197 409 euros
Multiply this amount by 0.78
197,409 × 0.78 = 153,979.02 euros
This is the maximum amount of net dividends you can pay out without making an additional loss to the company because of income tax.
The income tax on that amount would be:
153,979.02 × 22/78 = 43,429.98 euros
How to pay out dividends?
After calculating the dividend amount, you have to make a payment from your corporate bank account to the company shareholder's account for the desired dividend amount.
Specify "Dividends" or "Dividendid" in the payment explanation.
NB! After that, be sure to notify your accountant of the dividend payment, attaching the decision on dividend payment and the bank receipt for payment.