When can I pay dividends (operating outside of Estonia)?

In general, shareholders decide whether to distribute dividends and in what amount once a year when submitting the annual report, typically between March and June.

Once the shareholders have decided to distribute a certain amount as dividends, this does not mean that the full amount must be paid out immediately. The shareholders’ decision does not trigger an automatic transfer from the company’s bank account. Instead, the company can decide when to make the actual dividend payments.

With Xolo, actual dividend payouts can occur once per quarter.

If all or part of the allocated dividends remain unpaid for three years, the amount is not lost. Instead, it is transferred back to retained earnings on the company’s balance sheet and may be distributed as dividends again in the future.

In summary, the shareholders decide once a year how much to distribute as dividends, while the actual payment of those dividends can be made either in full or in instalments over a longer period.