High-dividend corporations must disclose a plan to enhance corporate value, including dividends income and payout ratio from the previous fiscal year, by the day after the regular shareholders meeting resolves dividends on earnings.
The Financial Services Commission said on the 24th that a revision to the enforcement decree of the Act on Restriction on Special Cases Concerning Taxation containing these measures was approved at a Cabinet meeting.
After the Act on Restriction on Special Cases Concerning Taxation was revised in Dec. last year, separate taxation of stock dividends income was introduced, and the government revised the enforcement decree of the law to spell out how high-dividend corporations eligible for the dividends income tax special case must make disclosures.
The corporate value enhancement plan includes dividends income, payout ratio, and the amount of earnings dividends that occurred in the previous fiscal year. However, aside from dividends-related results, listed companies decide the content and length to include in the disclosure.
Considering that this is the first year this disclosure policy is being implemented, a simplified disclosure will also be allowed that lists only key points in the body, such as confirmation of meeting the special requirements for dividends income and targets for return on equity (ROE) and payout ratio.
The Korea Exchange (KRX) plans to support disclosure work by high-dividend corporations by offering one-on-one disclosure consulting next month and two online briefings (on the 4th and 9th). It also decided to reflect items such as disclosure forms, notes on entries, and examples of simplified disclosures in the guideline commentary.