Shares in corporations are held as business property
If shares in corporations are held as business property, the final
withholding tax is not applicable. In such cases 40% of the
received income is tax-exempt and 60% of the related expenses
are deductible as business expenses (partial income system).
The withholding tax on the dividends (25% of the gross amount
plus solidarity surcharge) that is withheld by the debtor of the
dividends and remitted to the tax authority is credited against
the income tax liability of the recipient of the dividends.
For non-resident individuals, the withholding of tax is generally final.
EU Forecast
euf:ba.18g:22/nws-01