A dividend is a distribution to shareholders, not an informal withdrawal from the company bank account. Before declaring one, directors should confirm distributable profits, the rights attached to each share class, the recipient details and the applicable Dividend Withholding Tax treatment.
StartCompany.ie’s €200 dividend package prepares the routine company documentation and board resolutions. The company’s accountant or tax adviser should confirm the available profits, tax filings and exemptions.
Cash is not the same as distributable profit
A company may have money in the bank but insufficient realised profits available for distribution. Paying an unlawful dividend can expose recipients and directors to repayment and governance consequences.
Use current management information and approved accounts with accountant input. Loans, capital introduced and VAT or payroll money should not be mistaken for profits available to shareholders.
Approving and documenting the dividend
Check the constitution, share classes and any shareholder agreement. The board record should state the basis, amount, payment date, recipients and evidence considered, with vouchers issued to shareholders.
Different rights or waivers require care. A routine template should not be used to redirect value between shareholders without legal and tax advice.
- Confirm distributable reserves with the accountant.
- Review share-class dividend rights.
- Approve the amount and payment date.
- Prepare minutes and dividend vouchers.
- Apply DWT reporting, payment or valid exemption documentation.
Dividend Withholding Tax
Revenue states that most Irish resident companies paying dividends must operate Dividend Withholding Tax, currently generally 25 percent, unless a valid exemption applies. The company making the distribution has reporting and payment responsibilities.
The shareholder may have further Irish or foreign tax to report. Residence, treaty status and exemption declarations should be checked before payment rather than reconstructed later.
StartCompany.ie documentation support
Our €200 package prepares the company-secretarial documents for a routine dividend based on figures and tax treatment confirmed by the company and its adviser. Send the share register, class rights, proposed amount, payment date and accountant confirmation.
The service does not replace annual accounts, CT1 preparation, payroll advice or bespoke tax planning. Coordinate the records with the accountant so the financial statements and tax returns match the approved distribution.
StartCompany.ie service
Dividends Package
Current listed price: €200
Official information and next steps
StartCompany.ie provides preparation and filing support for the service described above. Final acceptance, registration, tax treatment or court approval remains with the relevant authority. Check the current official guidance before acting, particularly where a deadline, tax position, dispute or unusual transaction is involved.