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. Kesko plans to pay its dividends in two instalments, starting with the dividend paid for the year 2018.

Dividend in 2021

Kesko Corporation's Annual General Meeting 28 April 2020 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 remains in equity. The dividend is to be paid in two instalments.

The first instalment, €0.38 per share, is to be paid to shareholders registered in the Company's register of shareholders kept by Euroclear Finland Ltd on the first dividend instalment payment record date 14 April 2021. The first dividend instalment pay date is 21 April 2021.

The second instalment, €0.37 per share, is to be paid to shareholders registered in the Company's register of shareholders kept by Euroclear Finland Ltd on the second dividend instalment payment record date 1 October 2021. The second dividend instalment pay date is 8 October 2021. The Board is authorised to decide, if necessary, on a new dividend payment record date and pay date for the second instalment if the rules and statutes of the Finnish book-entry system change or otherwise so require.

Changes in withholding taxation of dividends as of 1 January 2021

Finland has changed the withholding tax regime applicable on dividends paid to holders of nominee registered shares as of 1 January 2021. The new rules amend the procedure of granting treaty benefits at source. In practice, as of 2021, the relief at source is not necessarily applicable for all the shareholders of Kesko Corporation who have in earlier years benefitted from the reduced withholding tax rates.

Foreign holders of nominee registered shares

From the beginning of 2021, withholding tax of 35% will, as a starting point, be applied to dividend payments made on nominee registered shares held by non-Finnish tax residents. However, a lower withholding tax rate (e.g. based on a tax treaty) 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. 

Tax withheld in excess can be reclaimed from the Finnish Tax Administration 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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