Companies registered under the jurisdiction of the Republic of Estonia have the right to distribute profits derived from business operations, i. e. to pay dividends to their shareholders (participants). Dividends are paid on the basis of the company’s profit for the previous business year, which is recorded by submitting an annual report to the Commercial Register. A prerequisite for the implementation of the dividend distribution process is the presence of the authorized capital formed and registered in the Commercial Register. The dividends are subject to income tax at the rate of 20/80, i. e. if you decide to distribute an amount of € 100,000, € 20,000 will constitute the income tax payable and € 80,000 will be paid to the company owners.