Dividend policy and dividend

Dividend policy

In the long-term, Kesko aims to distribute a steadily growing dividend of some 60-100% of its comparable earnings per share, taking into account the company’s financial position and strategy. 

Dividend in 2022

Kesko Corporation's Annual General Meeting 7 April 2022 made a resolution that a dividend of €1.06 per share be paid for the year 2021 based on the adopted balance sheet on shares held outside the Company at the date of dividend distribution. The remaining distributable assets remained in equity. The dividend will be paid in four instalments as follows:

  • The first instalment of €0.27 per share was paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 11 April 2022. The pay date was 20 April 2022.
  • The second instalment of €0.26 per share was paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 22 June 2022. The pay date was 29 June 2022.
  • The third instalment of €0.27 per share was paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 13 September 2022. The pay date was 20 September 2022.
  • The fourth instalment of €0.26 per share is to be paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 13 December 2022. The pay date is 20 December 2022.

 

Dividend in 2021

Kesko Corporation's Annual General Meeting 12 April 2021 made a resolution that a dividend of €0.75 per share be paid for the year 2020 based on the adopted balance sheet on shares held outside the Company at the date of dividend distribution. The remaining distributable assets remained in equity. The dividend was paid in two instalments.

Changes in withholding taxation of dividends

Foreign holders of nominee registered shares

Finland has changed the withholding tax laws applicable on dividends paid to holders of nominee registered shares as of 1 January 2021.

In practice this means that withholding tax of 35% will, as a starting point, be levied on Finnish source dividend payments made on nominee registered shares held by non-Finnish tax residents. However, a lower withholding tax rate may be applied, if a custodian has registered with the Tax Administration’s Public Register of Authorised Intermediaries and has advised of a lower withholding based on the required additional information collected by them. 

It is possible to apply for a reclaim from the Finnish Tax Administration of any tax withheld in excess of the applicable withholding tax rate (e.g. applicable tax treaty rate). The reclaim can be made after the year of the dividend payment. Reclaim application can be submitted to the Finnish Tax Administration either on paper (form for corporate entities here, and for individuals here) or electronically.

You may also be able to receive a refund already during the year of dividend payment via your registered custodian. Please contact your custodian for further information on the so called quick refund procedure.

Additional information on withholding tax reclaims can be obtained from the Finnish Tax Administration either:

- by e-mail whtreclaims@vero.fi (for corporations only); or
- via the Tax Administration’s general telephone and chat helplines (for both individuals and corporations)

Please note that Kesko does not process applications for withholding tax reclaims nor respond to enquiries regarding withholding taxes.

Finnish holders of nominee registered shares

Dividends paid to Finnish tax resident holders of nominee registered shares may as of 2020 have been subject to withholding of 50% tax prepayment (ennakonpidätys). Any excess tax prepayment is credited in the normal tax assessment process, where the shareholder reports their dividend income to the Finnish Tax Administration.
  

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