Tax Advisory

Is there withholding if I do not distribute the profit?

No. Dividend withholding arises at the moment of distribution; while the profit stays in the company, no withholding is applied. Adding profit to capital is not treated as a distribution either, so no withholding arises there. But capitalised profit no longer reaches the shareholder in cash, so the decision weighs the company's funding needs against the shareholder's expectations.

Read the full article: Distributing Profit From a Technopark Company With Foreign Shareholders: What Happens to Exempt Earnings →