Declare and distribute dividends to shareholders with all required documentation and board resolutions.
Dividends are payments made by a company to its shareholders from the company's profits. They represent a return on the shareholder's investment in the company. In Ireland, dividends can only be paid out of distributable profits — meaning the company must have sufficient retained earnings.
Dividend Withholding Tax (DWT) at a rate of 25% generally applies to dividends paid by Irish companies. However, exemptions may be available for certain shareholders, including Irish resident companies and shareholders resident in countries with which Ireland has a double taxation agreement.
We recommend consulting with a tax advisor to understand the full tax implications of declaring dividends for both the company and its shareholders.
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