How is income and dividend taxation of the company executed?

Intrinsically, the company’s profits for an accounting period is not taxed. The moment of corporate income taxation is shifted until the distribution of profits, for example, in the form of dividends.

Paid out dividends are subject to corporate income tax. If your company pays dividends for the first time, or pays dividends irregularly, then the corporate income tax rate is 20/80 or 25%. The tax is payable in a month following the distribution of dividends.

Example 1

In January 2024, the company paid out dividends in the amount of EUR 10,000.
The corporate income tax rate is EUR 2,500.
The tax payment due date is February 10, 2024.

Example 2

The company finished the business year at a profit of EUR 100,000.
There is no distribution of dividends.
There are no obligations arising from taxes.