Very excessive income of firms and the dividends acquired from them don’t hurt the treasury. Within the first half of the 12 months, revenue from withholding tax on dividends rose by at the very least 86 % to a file excessive of two.5 billion euros.
The sharp enhance in company dividends is a giant shock not just for traders, but in addition for the Treasury. The €2.5bn in withholding tax that the tax authorities collected from dividends within the first half of the 12 months is almost double what it was in 2020 and 2021 and greater than double what it was within the pre-pandemic years. The additional crop greater than offsets the general decline over the 2 years of the pandemic.
KBC paid an exceptionally excessive dividend in Might.
“Greater than half of those distinctive first-half earnings got here from dividends paid out in Might,” the Federal State Monetary Service mentioned in an announcement. Particularly, KBC paid out exceptionally excessive quantities on the time. The insurer financial institution paid 7.6 euros gross per share in Might in comparison with 0.44 euros in Might final 12 months. Of those, 2 euros had been deferred dividends for the 2020 monetary 12 months. KBC paid out greater than 3 billion euros within the first half of the 12 months, in comparison with 183 million in the identical interval final 12 months.
Eurozone banks are now not topic to European Central Financial institution restrictions. Banking regulators have capped dividends through the pandemic to guard the sector’s capital reserves.
- Dividend withholding revenue rose 86 % within the first half to a file excessive of $2.5 billion.
- KBC paid exceptionally excessive dividends.
- Many different firms have additionally elevated their dividends dramatically as income soared in 2021 after the 2020 recession.
- The earnings outlook may be very unsure as a result of looming recession.
KBC was not the one firm to ship excellent news to its shareholders. KBC Ancora, Bekaert, Bois Sauvage, VGP and Van de Velde additionally elevated their dividends considerably.
All Belgian listed firms collectively elevated their dividends for fiscal 12 months 2021 by 56 % to round 10 billion euros. Most of this quantity was paid within the first half of 2022. As well as, there are additionally dividends from non-listed and international firms and from funding funds. It additionally withholds 30% revenue tax.
Dividends for Belgian firms rose 56 % to 10 billion euros.
Many firms have been capable of considerably enhance their dividends as a result of they’ve had a fantastic 12 months. Gross revenue margins for Belgian non-financial firms rose to a file excessive of 45.1 % in 2021 as a result of many firms had been capable of climate the rise in prices fairly simply. The sturdy financial restoration from a extreme recession in 2020 additionally helped increase income. The online revenue of Belgian listed firms exceeded 20 billion euros for the primary time in 2021.
The income forecast for 2022 may be very unsure. On the one hand, gross margin continued to rise within the first quarter to a file excessive of 46.7%. A number of listed firms have already posted better-than-expected half-year outcomes. However, there are rising indicators that financial development threatens to stall within the second half of the 12 months. It will make it more durable for firms to hold ahead important value will increase.
The looming recession will make it more durable to bear the numerous value will increase.
It appears to be like like dividends, and therefore withholding tax revenue, will fall subsequent 12 months. Dividends from KBC and KBC Ancora will nearly actually fall to “extra regular” ranges. Telenet has introduced that it’ll reduce its dividend by two-thirds, and a repeat of a bonus dividend like Bois Sauvage is unlikely.