Understanding the Dividend Payment Process for LITGRID AB
The shareholders’ meeting of LITGRID AB has recently solidified the decision regarding the distribution of profits for the year 2024. A dividend of EUR 0.049 per share is set to be distributed, beginning on 28 May 2025. This initiative reflects the company's commitment to rewarding its shareholders while ensuring compliance with the local tax regulations.
Payment Methodology for Dividends
The payments will be structured in a straightforward manner. Shareholders whose LITGRID AB shares are managed by financial brokerage firms or credit institutions will see the dividend amounts credited to their accounts after applicable withholding taxes are deducted. This is an essential step to comply with the legal requirements of Lithuania.
Process for Shareholders with Brokerage Accounts
For those holding their shares through brokerage firms, the dividends will be directly transferred into the shareholders' accounts at their respective brokerage institutions. This streamlines the process and ensures that individuals receive their funds efficiently.
Payment for Shares Held by Custodians
Shareholders whose shares are maintained on their behalf by an authorized custodian, specifically AB SEB bankas, will also receive their dividends after tax deductions. They may opt to have their funds transferred to either their accounts with AB SEB bankas or another bank of their choosing, provided they submit the necessary account details to the custodian.
Tax Implications for Dividends
The taxation of dividends in 2025 will follow set guidelines. For individual residents of Lithuania and foreign countries, a withholding Personal income tax of 15% will be applicable on the dividends received. Legal entities in Lithuania and abroad will face a withholding Corporate income tax at the rate of 16%, assuming no exemptions are outlined by law.
Benefits of Double Taxation Agreements
Foreign residents can benefit from reduced withholding tax rates if their home countries have established agreements with Lithuania aimed at avoiding double taxation. To leverage this, they need to submit a Claim for Reduction or Exemption from the Anticipatory Tax Withheld at Source using form FR0021 (DAS-1) to LITGRID AB, alongside broker confirmation, by 20 May 2025.
Contact Information for Queries
For shareholders seeking additional clarifications regarding the dividend payout, contacting AB SEB bankas at their dedicated phone number 1528 is recommended. This ensures that all questions are addressed by qualified personnel who can provide tailored assistance.
Company Contacts for Further Information
To obtain further insights specifically regarding LITGRID AB’s dividend payment processing, shareholders can reach out to:
Jurga Eivait?
Communications Project Manager
Phone: +370 613 19977
Email: jurga.eivaite@litgrid.eu
Frequently Asked Questions
What is the dividend amount for LITGRID AB for 2024?
The dividend amount is set at EUR 0.049 per share for 2024.
When will the dividends be paid out?
Dividends are scheduled to be paid starting from 28 May 2025.
How are dividends taxed for individual shareholders?
Individual shareholders are subject to a 15% withholding Personal income tax on dividends received.
What should foreign shareholders do to benefit from tax treaties?
Foreign shareholders need to submit the appropriate claim form to LITGRID AB by the deadline alongside necessary documentation.
Who can I contact for more information regarding dividends?
For inquiries related to dividends, shareholders can reach out to Jurga Eivait? using the provided contact information.
