Since the summer agreement, as from 1 January 2018, every shareholder can reclaim the withholding tax that he has paid on dividends from shares up to a maximum of 640 euros via the annual tax return. This gives him a tax benefit of 192 euros.
In practice, companies or financial institutions will still initially continue to withhold the 30% withholding tax on all dividends. The exemption is granted through the personal income tax return.
This exemption from withholding tax, up to a maximum of 640 euros for the dividends on shares received in 2018, can therefore be submitted for the first time via the annual personal income tax return to be filed in 2019. Why not opt for this tax-free gift at the next general meeting? This option applies to all companies*.
In order to further reinforce this measure, the federal government has even planned to increase this exemption to 800 euro for the 2019 income year. This means a tax benefit of 240 euros.
with the exception of undertakings for collective investment or mutual funds
