Did you know that dividend payment obligations will change from 2026?

1️⃣ Which tax rate applies to dividends paid in 2026?

For dividend payments, the year the profit was generated is decisive – not the date of payment:

• 7% – profits for tax periods starting on or after 1 January 2025
• 10% – profits generated on or after 1 January 2024
• 7% – profits generated between 1 January 2017 and 31 December 2023

2️⃣ What are the company’s obligations when paying dividends?

Each company (as the withholding agent) distributing profit shares to individuals must:

• Withhold tax at the time of dividend payment
• Remit the withheld tax to the tax authority by the 15th day of the following month (if the due date falls on a weekend or public holiday, it shifts to the next working day)
• Submit the Notification of Withheld and Remitted Tax within the same deadline
• In case of partial dividend payments, withhold tax from each portion separately and submit a notification for each month in which a payment was made

3️⃣ New notification form: OZN4311v26

A new version of the Notification of Withheld and Remitted Tax becomes effective from January 2026.

It is submitted for dividend payments made in January 2026 and filing deadline is 16 February 2026.

The new Section A includes a detailed breakdown for each dividend recipient:

• name and identification of the individual (birth number or date of birth),
• permanent address,
• taxable income,
• payment date, tax rate, tax withheld,
• date of remittance of the withheld tax.

4️⃣ What does this mean for individual shareholders?

The withheld tax is final.

Dividend income is no longer included in the personal income tax return – regardless of the amount received.

💡 Need help setting up your dividend payment processes?

We are ready to assist you in assessing tax implications and obligations related to dividend distributions in 2026. Feel free to contact our experts below.

***

The tax environment is a subject to frequent changes. We strive to reflect the current state as accurately as possible, but all information on our website is valid as of the date of publication. If you have any questions or uncertainties, please don’t hesitate to reach out to us. We will assess the current impact of any tax-specific issue on your situation or company.