Payment of dividends

Pursuant to the decision of the general annual meeting of shareholders of Tallinna Kaubamaja Grupp AS held on 21 March 2019, a dividend of 0.71 euros per share will be paid. The list of shareholders entitled to receive dividends was fixed on 4 April 2019, as at the end of the working day of the Nasdaq CSD branch in Estonia. Dividends will be paid to shareholders on 12 April 2019 by transfer to shareholders’ bank accounts.

Tallinna Kaubamaja Grupp AS as a company paying regular dividends is eligible for partial exemption from income tax when paying income tax on dividends. Pursuant to the Income Tax Act, the part of dividends that is lower than or equal to the average distributed profit of the previous three calendar years which was taxed in Estonia is taxed with an income tax rate of 14% (14/86 of the net amount) at the company level. An income tax rate of 20% (20/80 of the net amount) will apply to the remaining part of the dividend payment. According to the law, lower tax rate shall in 2019 be applied to one-third of the profit distributed in 2018 on which a resident company has paid income tax.

On 12 April 2019, Tallinna Kaubamaja Grupp AS will pay dividends in the amount of 28,918 thousand euros. In this context, 28.81% of the dividend pay-out is taxed with a lower tax rate (14%) and 71.19% is taxed with a tax rate of 20%.

Pursuant to clauses 41 (7²) and 43 (1) 1¹) of the Income Tax Act, Tallinna Kaubamaja Grupp AS undertakes to withhold a 7% income tax on dividends paid to natural persons if it is taxed at a rate of 14%. According to the explanations of the Tax and Customs Board, the withholding agent must withhold a 7% income tax on dividends even if the private investor keeps the shares in an investing account.

Shareholders who are private persons receive dividends as a net amount from which the entire income tax has already been withheld. Private persons using an investment account system will receive the dividend payment as a contribution to the investment account.

Payments per share:

Dividends received by private shareholders are in the amount of 0.69568063 euros per share.
Dividends received by corporate shareholders are in the amount of 0.71 euros per share.