BOOK-KEEPING AND DIVIDENDS TAX FISCALITY

Abstract

Dividends represent a distribution in cash or in kind, made by a legal person to a participating in legal person as a result of ownership equity in that person. The incidence of taxation on dividend policy involves targeting the optimal dividend policy, subject to ongoing changes and effect of customer ownership. Generally, into the current tax system, dividends are taxed more heavily than capital gains from the rising value of the shares.Dividends are distributed to shareholders in proportion to participation in paid up share capital, if the constitutive act don't provides otherwise. Distribution of dividends will not be able to made then from profits arising under the law.

Keywords

• taxation laws
• dividends
• shareholders
• principles
• interest
• penalties