Dividends Tax-Free and with 5% Return: An Overview
In Germany, there are more than 20 listed companies planning to distribute their dividends fully or partially tax-free from capital reserves in 2025. This development is particularly interesting for private investors and savers looking for attractive investment forms.
MPC Capital: An Example of Tax-Free Dividends
An example of a company paying tax-free dividends is the financial service provider MPC Capital from Hamburg. At the annual general meeting on June 13, 2025, a dividend of 0.27 euros per share for the financial year 2024 is to be decided. The ex-date is June 16, 2025, and the payment will be credited to investors’ accounts at the depository banks on June 18, 2025.
The dividend from MPC Capital will be distributed tax-free from the so-called tax deposit account pursuant to Section 27 of the Corporation Tax Act. This means that the payment does not come from the company’s current profits but from reserves or deposits that the shareholders previously contributed.
Return of 5%
The dividend yield from MPC Capital is about 5.00 percent. This yield is attractive, especially in times of low interest rates and volatile markets.
Tax Aspects
Although some dividends are distributed tax-free, investors typically have to pay capital gains tax on their capital income. This amounts to 25 percent plus a solidarity surcharge and, if applicable, church tax. To save on taxes, investors can submit an exemption order to their bank, which allows a tax-free allowance of 1,000 euros per person per year.
Conclusion
The tax-free distribution of dividends by German companies such as MPC Capital offers investors an attractive opportunity to maximize their returns. In light of current market developments and the search for safe investment forms, such investments could be particularly interesting.