More than 20 publicly listed companies in Germany plan to pay their dividends entirely or partially tax-free from capital reserves in 2025. This is particularly attractive for private investors since such distributions do not originate from current profits but from so-called tax deposit accounts in accordance with §27 of the Corporate Tax Act (KStG). As a result, the dividend remains tax-free for the investor.
An Example from Practice: MPC Capital
A concrete example is the Hamburg-based financial services provider MPC Capital. At its annual general meeting on June 13, 2025, a dividend of €0.27 per share for the financial year 2024 is to be resolved. The ex-date is June 16, 2025; the payout will occur from June 18 to the settlement accounts of investors at their custodian banks. The current dividend yield is around five percent – an attractive figure in the current interest rate environment.
Important Details Regarding Tax-Free Distribution
- Tax Treatment: The distribution does not come from the company’s current profits but from reserves or deposits (tax deposit account). Thus, it is not taxed as income for the recipient.
- Relevance for Private Investors: For private investors, this means an effective increase in post-tax returns.
- Other Companies: In addition to MPC Capital, there are numerous other publicly listed companies in Germany with similar plans – including banks and tech corporations.
- Physical Dividends: Besides classic cash dividends, there are occasionally physical dividends (e.g., vouchers or additional shares), with the latter often only taxed upon sale (tax deferral).
In summary, German financial service providers like MPC Capital plan to distribute a dividend with about a five percent yield and tax-free payouts in 2025. This possibility also exists with more than twenty other German companies from various sectors, providing private investors an interesting opportunity for high net returns.