Glossary
Dividend
Definition
A dividend is a payment from the company's profit to its shareholders. Estonia taxes a distribution when it is paid out, and the tax is reported in the TSD return for the month of payment. A dividend is not a salary, and it is not an expense of the company.
Example. A dividend of €1,000 paid to the owner in June is recorded as a reduction of retained earnings. The tax is reported in the June TSD return, due on 10 July.
Why it matters for your company
Dividends are one of the two main ways an owner takes money from an Estonian company. The tax and the TSD filing make a dividend different from a salary, so you need to know both.
Where you see it in Sapita
When you record a dividend payout, and in the calendar item that follows it.