In Germany, Europe, and the USA, there are around 50 publicly listed companies that plan to distribute dividends completely or partially tax-free from capital reserves in 2025. This practice is of particular interest to private investors and small shareholders, as it directly influences returns.
Background and Legal Foundations
The tax-free dividends are based on balance sheet restructuring, where payments from capital increases and deposits from previous years are refunded to current corporate owners. This occurs not from generated profits, but from the companies’ capital reserves. As a result, shareholders can receive dividends brutto for netto , without the burden of the saver allowance.
Examples of Companies
An example of a company that distributes tax-free dividends is the media company Edel SE & Co. KGaA. It plans to distribute a dividend of 30 cents per share in 2025, to be paid out on April 1st.
Tax Aspects
In Germany, capital gains, including dividends, are subject to withholding tax of 25% plus solidarity surcharge and possibly church tax. The saver allowance is 1,000 euros for single individuals and 2,000 euros for married couples, within which capital gains remain tax-free. Thus, tax-free dividends from capital reserves offer a way to reduce the tax burden.
Political Developments
Currently, there are political discussions about a possible increase in the withholding tax on capital gains, which could influence the attractiveness of stock investments. The SPD has proposed raising the withholding tax from 25% to 30%, which has been criticized by investor protection advocates.
Summary
Tax-free dividends from capital reserves offer shareholders a way to increase their returns by reducing their tax burden. However, this practice is not common among all companies and depends on specific balance sheet restructuring. Private investors should stay informed about the tax framework and potential political changes to make optimal investment decisions.