Specifications for taxation of dividends

(1) A company, the income tax paid by whom pursuant to subsection 32 (2) of the Income Tax Act in force before the entry into force of this Act has not been fully deducted on the basis of an income tax return submitted with regard to the last period of taxation which ended before the entry into force of this Act from the income tax payable on the basis of the same Act, may deduct the overpaid amount of income tax from the income tax payable on the basis of subsection 50 (1) or (2). If the overpaid amount of income tax exceeds the income tax payable during a period of taxation on the basis of subsection 50 (1) or (2), the remaining part of the overpaid amount, which has been reduced on the basis of the right of deduction transferred to another resident company pursuant to subsection (3), may be carried forward to subsequent periods of taxation.
[RT I 2008, 51, 286 - entry into force 01.01.2009]

(2) If a resident company pays dividends from the net profit of financial years which ended during the years 1994–1999, the company may deduct the part of income tax paid during the years 1994–1999 on the part of the profit which corresponds to the dividends from income tax payable on the basis of subsection 50 (1), but not more than by the amount of income tax payable during the period of taxation on the basis of subsection 50 (1). The income tax deductible is determined such that the total amount of income tax of the company, calculated on taxable income and adjusted by incentives in the income tax returns submitted for the periods of taxation of the years 1994–1999, is divided by the total amount of the lines “net profit of the accounting year” in the balance sheets of the company’s annual reports of the years 1994–1999, from which the size of bonus issues carried out in the years 1994–1999 on account of the net profit of the same years is deducted, and the resulting amount is multiplied by the amount of the dividends paid.

(3) [Repealed - RT I 2001, 91, 544 - entry into force 01.01.2003]

(4) [Repealed - RT I 2001, 91, 544 - entry into force 01.01.2003]

(5) [Repealed - RT I 2001, 91, 544 - entry into force 01.01.2003]

(6) A company to which the right to deduct income tax provided for in subsections (1) and (2) has been transferred by another resident company before 1 January 2003 may, in addition to the income tax specified in subsection (2), also deduct the transferred income tax from the income tax payable pursuant to subsection 50 (1), but the deduction is limited to the total amount of income tax payable pursuant to subsection 50 (1) during the period of taxation. The remaining amount of transferred income tax resulting from such deduction may be deducted from the income tax payable pursuant to subsection 50 (1) during subsequent periods of taxation.

(7) [Repealed - RT I 2001, 91, 544 - entry into force 01.01.2003]

(8) [Repealed - RT I, 18.11.2010, 1 - entry into force 01.01.2011]

Дата добавления: 2015-11-14