Questions & Answers

Dividends and Taxation

We are proud of the best year in the company’s history. Our shareholders participate in this success with the biggest dividend in the company’s history. The shareholders of Daimler approved at the Annual Meeting held on April 5, 2018 a dividend of €3.65 (prior year: €3.25) per share for the year 2017. This represents a total dividend payout of €3,905 million (prior year: €3,477 million) and equals a pay-out ratio of approximately 37 (prior year: 41) percent of the net profit attributable to the shareholders of Daimler AG.

Ex dividend trading starts on the first working day after the annual meeting.

The pay date for the dividend amount is the third working day after the Annual Meeting, i.e. on April 10, 2018 to the custodian banks, which take care of the dissemination to the shareholders.

We aim to achieve a sustainable dividend development also in the coming years. In setting the dividend, our target is to distribute approximately 40 % of the net profit attributable to Daimler shareholders.

A table with dividend amounts and payment dates is available here.

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.

Daimler AG shares are held in collective safekeeping. Please contact your personal / custodian bank.

Owners of DaimlerChrysler share certificates should contact

in Europe/Asia:

Link Market Services (Frankfurt) GmbH
P.O. Box 1207
65742 Eschborn
Germany
Phone: +49 (0) 6196 8870 700
Fax: +49 (0) 69 2222 34282
e-mail: daimler.service@linkmarketservices.de

in North America:

Daimler AG
c/o American Stock Transfer & Trust Company, LLC
6201 15th Avenue, 3rd Floor
Brooklyn, NY 11219
Attn. Susan Lucanto
Fax No. (001) 718 765-8730
(toll free) Phone: +1 866 662-3934
e-mail: info@amstock.com
website: www.amstock.com

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 2018 for 2017):

  1 share 1,000 shares
Dividend 3.65 Euro 3,650.00 Euro
Less 25% withholding tax -0.91 Euro -912.50 Euro
Less 5.5% solidarity surcharge on the withholding tax -0.05 Euro -50.19 Euro
Net dividend paid 2.69 Euro 2,687.31 Euro

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.

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.

Example (based on the dividend paid in 2018 for financial year 2017):

  1 Share 1,000 Shares
Dividend 3.65 Euro 3,650.00 Euro
Less 25% withholding tax -0.91 Euro -912.50 Euro
Less 5.5% solidarity surcharge on the withholding tax -0.05 Euro -50.19 Euro
Net dividend paid 2.69 Euro 2,687.31 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

Federal Central Tax Office
Department St III 2
An der Küppe 1
D-53225 Bonn
Germany

Contacts for foreign investors
Phone: +49 (0) 228 406 1212
Fax +49 (0) 228 406 3119

Internet:

The German tax authority offers a subsite: www.Germantaxes.info

The amount must be claimed until December 31, 2021.

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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