Questions & Answers regarding dividends and taxation
Overview
What is the dividend amount to be paid in 2015 for the 2014 financial year?
At the Annual Shareholders’ Meeting to be held on April 1, 2015, the Board of Management and the Supervisory Board will propose the distribution of a dividend of €2.45 (last year: €2.25) per share. With the once more increased dividend and thus the highest profit distribution by Daimler AG so far, we are letting our shareholders participate in the company’s success and at the same time expressing our confidence about the ongoing course of business.
The dividend distribution will amount to €2,621 million (last year: €2,407 million) and the distribution ratio will be 38 % of the net profit attributable to the Daimler shareholders (last year: 35 %). In the coming years, Daimler aims for a distribution ratio in the magnitude of 40%.
When will the dividend be paid / When is the ex dividend date?
Provided the shareholders approve of the dividend proposal, the dividend amount will be paid to on the first working day after the Annual Meeting, i.e. on April 2, 2015 to the custodian banks which take care of the dissemination to the shareholders.
This will also be the day of ex dividend trading in the stock.
What is Daimler's dividend policy?
The Company is committed to a future pay-out ratio of 40% of the net profit attributable to the shareholders of Daimler AG.
How much was the dividend in former years and when was the pay-out?
A table with dividend amounts and payment dates is available here.
Until when do I need to purchase shares to be entitled to a dividend?
In order to be entitled to the dividend payment after the annual meeting, you need to buy the shares (ISIN: DE 000 7100000) at the latest on the day of the Annual Meeting. A minimum period of holding the shares before or after the Annual Meeting is not required. In case of a purchase off-exchange/ over-the-counter deviations may apply. You can obtain information about possible deviations from the seller of the shares.
Who can I contact for questions on the dividend payment?
Daimler AG shares are held in collective safekeeping. Please contact your personal / custodian bank.
Owners of DaimlerChrysler share certificates should contact
in Europe/Asia:
Registrar Services GmbH
P.O. Box
60630 Frankfurt
Germany
Phone ++49-(0) 6196 - 8870 700
Fax ++49-(0) 69 - 2222 34282
e-mail: daimler.service@rsgmbh.com
in North America:
American Stock Transfer & Trust Company
Re. Daimler AG
Shareholder Services Group
6201 15th Avenue
Brooklyn, NY 11219
USA
(toll free) Phone: +1 866 662-3934
e-mail: info@amstock.com
website: www.amstock.com
Payment and taxation of dividends for stockholders of the company in Germany?
In the following, a distinction is made between shareholders subject to unlimited taxation in Germany (domestic shareholders) and foreign shareholders.
I. Domestic shareholders
(a) Taxation of dividends
The bank paying the dividend deducts withholding tax of 26.375% from the gross dividend paid by Daimler AG (= 25% withholding tax plus 5.5% solidarity surcharge on the withholding tax of 25%). The withholding tax generally has the effect of settling the shareholder’s income-tax obligation, i.e. the dividend income does not have to be declared in the German income tax return.
Example (based on the dividend proposed to be paid in 2015 for 2014):
1 share
 1,000 shares
Dividend
 €2.45
€2,450.00
Less 25% withholding tax 
 -€0.61
 -€612.50
Less 5.5% solidarity surcharge
on the withholding tax 
 -€0.03
 -€33.69
Net dividend paid
 €1.81
 €1,803.81
 
In addition to the withholding tax, as of January 1, 2015, church tax is also to be deducted from investment income if the shareholder belongs to a religious group for which taxes are collected by the German fiscal authorities.
If the shareholder provides a non-assessment certificate or a tax exemption order (in a sufficient amount) for investment income, the dividend is paid without any deduction.
If the shareholder has not provided his or her custodian bank with a tax exemption order for investment income or with a non-assessment certificate, but would qualify to receive such an order or certificate, he or she can receive a refund of the amount of the withholding tax deducted by the custodian bank from the fiscal authorities after this is duly filed in his or her income-tax return
(b) Taxation of gains on the sales of shares
If a shareholder sells Daimler shares that were acquired after December 31, 2008, any capital gain is subject to withholding tax. This means that the German custodian bank deducts withholding tax of 26.375% (withholding tax plus solidarity surcharge) and if applicable plus church tax. The withholding tax has the effect of settling the shareholder’s income-tax obligation, i.e. the capital gain is generally no longer included in the shareholder’s income-tax assessment.
The period that shares are held no longer makes a difference to the tax treatment, unlike in the past (when capital gains were taxable only within a so-called speculation period of one year).
(c) Losses on the sale of shares
Losses on the sale of Daimler shares that the shareholder acquired after December 31, 2008 can only be offset against taxable gains on the sale of shares that were also acquired after December 31, 2008. If the Daimler shares were acquired before January 1, 2009, the losses are not tax deductible.
 
Note:
The explanations given above serves only as general indications and do not constitute tax advice. The explanations reflect our interpretation of the relevant tax regulations as they are currently applicable. In individual cases, we recommend consulting a tax advisor to obtain additional information.
What is important regarding payment and taxation of the dividend for stockholders of the company living abroad?
1. Principles
1.1. Taxation in Germany
Natural persons who are neither resident nor normally living in Germany are subject to income tax on capital gains under Section 49 EStG (German income tax legislation). These include dividends from German corporations.
For persons to whom this provision applies, the income tax deducted from the dividend as withholding tax is deemed to settle the tax liability of these persons. The level of withholding tax retained in Germany also depends on the provisions of any double taxation agreements between the Federal Republic of Germany and the stockholder's home country.
1.2. Taxation abroad
Taxation of German dividends in the stockholder's home country is subject to the local fiscal regulations.
2. Payment of the dividend
The custodian bank pays the dividend to the stockholders deducting 25% capital gains tax and 5.5% solidarity supplement.
1 Share
 1,000 Shares
Dividend per share
 2.45 Euro
2,450.00 Euro
less withholding tax
 25%
 -0.61 Euro
 -612.50 Euro
less solidarity supplement on the withholding tax
 5,5% of 25%
 -0.03 Euro
 -33.69 Euro
Payment
 1.81 Euro
 1,803.81 Euro
The stockholder can file an application for a single tax voucher („Einzelsteuerbescheinigung”) at the custodian bank (showing the retained withholding tax and solidarity supplement) if the stockholder wants to apply for a reimbursement with the Bundeszentralamt für Steuern.
If the amount (tax rate) of the retained withholding tax and solidarity supplement exceeds the amount (tax rate) provided for in any existing double taxation agreement, shareholders of the company living abroad may apply for a reimbursement with the
Bundeszentralamt für Steuern
Department St I 9
An der Küppe 1
D-53225 Bonn
Germany
Contacts for foreign investors
Tel. +49(0) 228-406-1212
Fax +49(0) 228-406-3119
Internet:
 
The amount must be claimed until December 31, 2019.
The German tax authority offers a subsite for "foreigners" .
 
Note:

The explanations given above serves only as general indications and do not constitute tax advice. The explanations reflect our interpretation of the relevant tax regulations as they are currently applicable. In individual cases, we recommend consulting a tax advisor to obtain additional information.
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