Interim dividends 2025: last call to pay only 10% tax. As a reminder, with the close of September 2025, companies can distribute profits from quarters 1-3 of the current year, providing shareholders with the last chance to take advantage of the 10% share.
The end of the third quarter of 2025 marks the beginning of the profit distribution process (where applicable) in the form of interim dividends. A tax rate of 10 percent applies to dividends distributed and paid in 2025, set to increase in 2026 for residents.
For the quarterly distribution of dividends, arising from the profits of the 1st, 2nd, and 3rd quarters of 2025 (January-September period), the first procedural step is the inventory of assets, pursuant to Ministry of Finance Order 3,067/2018. The second procedural step is the preparation of interim financial statements as of September 30, 2025.
Interim or interim financial statements may be prepared only on the basis of an inventory of assets, and interim dividends may be distributed only on the basis of approved interim financial statements to the extent that there is a profit to be distributed. Thereafter, interim financial statements are submitted to the units of the Ministry of Finance within 30 days of their approval by the general meeting of shareholders.
Dividend tax is declared and paid by the 25th of the month following the month in which the dividends are paid, in accordance with the Tax Code. For dividends distributed but not paid in the year of distribution (including interim dividends), the tax is paid by January 25 of the year following the distribution. The obligation to declare and pay lies with the company that distributes and pays dividends to individuals.
It is reported that in 2025 the tax on dividends is increased from 8% to 10%, but in 2026 there is another increase, from 10% to 16%. Therefore, this is the last chance to take advantage of the 10 percent rate, as interim dividends for the last quarter will already be subject to the new increased rate of 16 percent.
The declaration of dividend income and the related health contribution (10%) through the single declaration is made by the annual deadline of May 25, and the actual payment of the contribution takes place in the year following the year of income receipt. The obligation to declare and pay lies with the individual who received the dividends. More information on dividend taxation in 2025 is available here.
The rules for the distribution of profits in the form of dividends are established by Law 31/1990, Law 82/1991 and the relevant implementing decrees issued by the Ministry of Finance. Dividends can be distributed annually, after approval of the previous year’s budget, or quarterly, during the year, after approval of the interim budget (regularization is done at the same time as the annual budget).
