Tuesday, 23 March 2010 10:45

Stora Enso's proposed fund distribution and its tax treatment

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STORA ENSO OYJ STOCK EXCHANGE RELEASE 23 March 2010 at 7.00 GMT

Stora Enso's Board of Directors will, as announced on 4 February 2010, propose to the Annual General Meeting of the Company to be held on 31 March 2010 that EUR 0.20 per share be distributed to the shareholders from the parent company's invested unrestricted equity fund.

Stora Enso has received a legally final advance ruling from the Finnish tax authorities on how the proposed fund distribution of EUR 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, EUR 0.035 per share will be treated taxwise as dividend and EUR 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.

For further information, please contact:
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242

www.storaenso.com

 

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