Dividends

Brazil – Interests on Shareholder’s equity, what is this ?

A very singular way of paying distributable profit Once distributable income has been calculated the company has the option to either pay dividends  or interest on shareholders’ equity or a combination of both. Let’s take a better look at interest on shareholders’ equity or JCP (Juros sobre Capital Próprio), a very singular way of paying …

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Brazil – Dividends are tax-free, did you know?

Regulation, beneficiaries, and payment rules As per Brazilian Corporate Law and the company’s bylaws, the company must convene an annual shareholders’ meeting no later than four months after the close of the fiscal year. During this meeting, among other agenda items, shareholders exercise their voting rights to determine the allocation of the fiscal year’s results …

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Brazil – From net to distributable profits, some maths

Calculating amounts available for distribution The Company’s Board of Directors is obligated to declare the distribution of net income from the preceding fiscal year, subject to review and deliberation by shareholders.Per Brazilian Corporate Law, net income is delineated as the fiscal year’s result, subtracting any accumulated losses from prior years, alongside provisions for income tax, …

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