ZF English

Goods to shareholders taxed as dividends

01.09.2004, 00:00 7



The amounts paid by firms for the goods or services that are supplied to shareholders or associates and put to personal uses by such individuals will be treated as dividends. The beneficiaries will thus pay the due taxes, in line with the ordinance modifying the Fiscal Code recently passed by the government. The normative document will come into effect starting next year. At the same time, the government has retained the stipulation regulating cases where the sum paid by a firm, for goods or services offered to a participant in that firm, exceeds the market price. The stipulation states that the difference between this and the market price is considered as a dividend. The tax on dividends will be raised from 5% to 10% for individuals. In the case of companies, the tax level is still 10%. This quota will also be applied to sums distributed to open investment funds, according to the normative document. ZF



 

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