- Change due to a reclassification within capital for tax purposes will already apply to the proposed dividend for the 2018 financial year
Deutsche Pfandbriefbank AG (pbb) will be in a position to distribute dividends without deduction of taxes (i.e. free of capital gains tax and solidarity surcharge, as well as church tax where applicable) for the foreseeable future. Based on current assumptions, pbb expects this to apply for dividend payments pertaining to the next five to seven years – including the dividend for the 2018 financial year, which is yet to be resolved by the annual general meeting. As a result, pbb will pay dividends on a 'gross for net' basis.
Distributions will be made free of tax deductions, since they will be made from pbb's contribution account for tax purposes (steuerliches Einlagenkonto), as a consequence of a reclassification within the Company's capital accounts for tax purposes. Said reclassification followed an internal review by pbb, which led to corresponding amendments in tax notices by the tax authority. This capital reclassification for tax purposes is exclusively affecting tax accounting; it does neither affect pbb’s balance sheets under German Commercial Code nor IFRS, nor does it affect regulatory capital ratios.
The change will be effective for the first time upon the distribution of dividends for the 2018 financial year. Previous periods will not be included as tax certificates have been issued; the amount on the contribution account for tax purposes will be carried forward for future periods.
Media contacts
Walter Allwicher, +49 89 2880-28787, walter.allwicher@pfandbriefbank.com