If you pay or receive dividends, the new dividend taxation rules may be important for you.
What has changed in terms of dividends?
Starting from 1 January 2021, the concept of dividends is to be expanded as some other payments will be treated as dividends, such as:
- payments for securities (participatory interests) to a non-resident who is a related party or registered in a low-tax jurisdiction;
- the amount of overestimated costs for purchase of goods or services from these categories of non-residents;
- amount of cost understatement upon selling goods, works or services to these categories of non-residents;
- any payments by a legal entity to a non-resident participant that reduce retained earnings of the legal entity.