Stora Enso's proposed fund distribution and its tax treatment
Mar 23, 2010. Stora Enso's Board of Directors will propose to the Annual General Meeting of the company to be held on March 31, 2010 that Euro 0.20 per share be distributed to the shareholders from the parent company's invested unrestricted equity fund.
Mar 23, 2010. /Lesprom Network/. Stora Enso's Board of Directors will propose to the Annual General Meeting of the company to be held on March 31, 2010 that Euro 0.20 per share be distributed to the shareholders from the parent company's invested unrestricted equity fund, company said in a statement received by Lesprom Network.
Stora Enso has received a legally final advance ruling from the Finnish tax authorities on how the proposed fund distribution of Euro 0.20 per share from the parent company's invested unrestricted equity fund will be treated for tax purposes. The advance ruling only concerns Stora Enso's tax withholding obligations as a distributor of funds. According to the ruling, Euro 0.035 per share will be treated taxwise as dividend and Euro 0.165 per share will be treated taxwise as repayment of invested equity at the point of payment. Stora Enso is liable to withhold due taxes on the part that will be treated as dividend.
The fund distribution will be treated partly as dividend because part of the funds in the invested unrestricted equity fund originated from earlier years' retained earnings, company said.
Stora Enso is a global paper, packaging and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products.