The State Secretary for Finance has extended the option to pay untaxed dividends to people who have inherited substantial interest shares. The option to pay untaxed dividends on inherited shares exists for dividends paid within 24 months of the testator's death. In connection with the transfer of the shares, income from substantial interest must have been taken into account with the testator. As a result of the dividend payment, the acquisition price of the shares will be reduced by the same amount.
Under civil law, dividends must be paid on all shares in the company. However, the facility only applies to inherited shares. The effect of the extension is that the facility may also be applied to non-hereditary shares already held by an heir at the time of the testator's death.
Heirs who have allowed the statutory 24-month period to expire can also still use the extended facility if they wish. They should have submitted a request to the inspector no later than 31 December 2014. The dividend must also have been received no later than that date.