Upward adjustment factors on dividends and other owner income

Dividend and other owner income reported in your tax return will be adjusted up using given factors.

You do not have to make any changes

The Tax Administration will adjust taxable dividend, distributions from companies that are assessed as partnerships, gains or losses you report in your tax return.

You will not be adjusting these numbers yourself.

Factors

Income year 2016 1.15
Income year 2017 1.24
Income year 2018 1.33
Income year 2019 1.44
Income year 2020 1.44
Income year 2021 1.44
Income year 2022 1.60 (01.01.2022 - 05.10.2022)
Income year 2022 1.72 (06.10.2022 - 31.12.2022)
Income year 2023 1,72

 

Why are the factors applied?

In recent years, the tax rate on general income has been reduced. As well as the intended reduction of tax on company profits, this led to an unintended reduction of taxes on owner income (dividends, distributions, realisation gains on shares).

In their proposition, 1 LS (2015-2016) point 3.1.3, the Ministry of Finance points to the fact that a reduced tax rate on general income means that it becomes more profitable for owners that are employed in their own company to get paid actual income from work as dividends and other forms of owner income, such as distributions from companies that are assessed as partnerships and gains and losses on the realisation of shares and ownership interests in businesses assessed as partnerships.

To counteract a shift of income, dividends and other forms of owner income reported in your tax return will from and including the income year 2016 be adjusted upwards by a given factor.