Dividend — Profit distribution and tax treatment
A dividend is a portion of the company's net profit paid to owners (partners/shareholders). In MK, dividends are subject to 10% tax withheld by the company upon payment.
Definition
A dividend is a portion of the company's net profit paid to owners (partners/shareholders). In MK, dividends are subject to 10% tax withheld by the company upon payment.
Details
Process: 1) Annual accounts show net profit. 2) Assembly/owner decides on distribution. 3) Company withholds 10% tax on payment. 4) Net dividend paid to owner. For DOOEL — owner decides alone. Tax is final — not included in annual tax return.
Example
Net profit 1M MKD. Owner decides to distribute 600K dividend: 10% tax = 60K (paid by company to UJP), owner receives 540K MKD.