The revision of the new company law has already been underway since 2014 and was finally adopted by Parliament in 2020. Most of the new provisions will come into force on January 1st of 2023. Among other changes, distributing interim dividends, i.e., dividends from the current year's profit will be possible.
Interim closing during the year
In order to be able to distribute a dividend on current profits, it is necessary to establish an interim closing during the year. The same principles must be applied as for the preparation of the regular annual accounts. Thus, the interim accounts also consist of the balance sheet, the income statement and the appendix. The purpose of the interim financial statements must also be mentioned in this latter. In principle, the interim financial statements must be verified by an auditor. An audit may be dispensed if all shareholders approve the distribution and the obligations to creditors are not jeopardised and an opting-out situation is excluded.
Decision of the general meeting
The decision of distributing an interim dividend is taken in the general meeting. In addition, as with the distribution of an ordinary dividend, the submission of forms to the FTA and the payment of withholding tax must be considered.
