Income tax is paid on dividends at the rate of 20/80.

Under certain conditions, a reduced (preferential) rate of income tax, 14/86, is applied to dividend payments. In this case an additional 7% income tax is withheld from the individual receiving the payment.

If the company pays dividends annually, the taxation of dividends will be slightly more favorable, because a different tax rate (14/86) will be applied to the part of dividends.