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Message:
Dear shareholders,
In the context of:
1. The expected growth of loan volumes in 2024 and the beginning of 2025, for which it is necessary to provide capital in advance; and
2. The dynamic economic environment and related risks which led to increase of the regulatory requirements buffer in the end of 2023 and beginning of 2024, as well as the additionally expected increase as of January 1st, 2025 related to the gradual implementation of Basel 4 regulations;
on 24.06.2024 the General Meeting of the Shareholders of UBB took a decision not to distribute dividends for 2023 to the shareholders, but to allocate the generated profit to increase the equity capital of the bank.
You could find below answers to questions, linked to payment of dividend by UBB for previous years, for which a decision on payment of dividends has been made.
Should you fail to find the needed clarification, please do not hesitate to contact us, by calling our Customer Service Centre at 070011717 or *7171; or writing to us at info@ubb.bg; or by visiting a convenient for you UBB branch throughout the country, listed at the following link:
https://www.ubb.bg/en/offices/central-offices
Needed Documents For individuals:
Question: What documents should I present in order to receive my dividend, if I am a natural person?
Answer: Payment of dividends to the Bank’s shareholders- natural persons - is being made after ascertainment of their identity by means of a presented valid ID card and in case the data of the person and his/her shareholding participation has been duly reflected in the system of Central Depository AD.
Question: I am a legal heir of a UBB shareholder- natural person. What documents should I present in order to receive my dividend and where could I obtain them from?
Answer: Payment of dividends to legal heirs of a deceased shareholder shall be made after presentation of a certificate for held financial instruments (depositary receipt), issued in the name of the legal heir by Central Depository AD, registration agent, a Legal Heir Certificate and an ID card of the heir.
Payment of dividend to more than one heir shall be made, conditioned on the simultaneous appearance of all heirs for the dividend payment, or in case a person appears, who has been duly authorized by all legal heirs to receive the dividend with a power of attorney, attested by a notary public.
If some of the legal heirs is a minor, dividend shall be paid to his/her parent/ guardian to an account in the name of the minor. Should some of the legal heirs be an underage person, dividend shall be paid upon the consent of a parent /guardian to an account of the underage person. The dividend sums can be paid to the parent / guardian or custodian, in case these have presented to the Bank a permission from the Regional Court as per the address of residence of the minor/underage person as per Art. 130, Para 3 of the Family Code for receiving the dividend sums, whose beneficiary is the minor / underage person.
Question: What kind of power of attorney do I need in order to receive the dividend?
Answer: Payment of dividend to a proxy of a shareholder is possible, if the authorizer’s signature on the power of attorney has been attested by a notary public and the document itself contains an explicit statement, empowering the proxy to receive the dividend, due to the respective shareholder.
Question: I live abroad and I am a shareholder of yours in my capacity as a natural person. How can I receive my dividend?
Answer: Payment of dividend to a proxy of a shareholder, living abroad, is possible, if the authorizer’s signature on the power of attorney has been attested by a notary public or at a Bulgarian Embassy or Consulate Office of the Republic of Bulgaria in the respective country and the document itself contains an explicit statement, empowering the proxy to receive the dividend, due to the particular shareholder.
The Bank will accept powers of attorney for receiving of dividend, due to a shareholder, which have been certified by foreign public notaries, operating in the following countries only: the United States of America, Canada and the European Union countries, as for representation purposes the authorizer shall have to submit the power of attorney at the Bank in person.
Powers of attorney, attested by foreign public notaries, shall have to be submitted to the Bank in legalized form, respectively accompanied with an apostille and translated in Bulgarian language by a sworn translator, whose signature should be attested by a notary public.
For legal entities:
For legal entities:
Question: What documents should I present in order to receive my dividend, in case of a legal entity?
Answer: If the legal entity-shareholder is a client of the Bank and its data and shareholding participation has been duly entered in the system of Central Depository AD, the dividend payment shall be made upon the request of the legal entity’s lawful representatives, as per the documents, presented at the Bank and certifying the legal status of the entity and the manner of its representation.
Upon changes in the circumstances, stated in the documents, presented at the Bank, the respective documents, evidencing the changes shall have to be presented.
If the legal entity-shareholder is not a client of the Bank, its lawful representatives shall have to submit the respective documents, certifying the entity’s legal status and representation.
Question: I am a legal successor of a UBB shareholder- legal entity. What documents should I present in order to receive my dividend and where could I obtain them from?
Answer: You need to provide documents, certifying the legal succession, as per the provisions of the applicable legislation.
Question: What kind of power of attorney do I need in order to receive the dividend?
Answer: Payment of dividend to a proxy of a shareholder is possible, if the authorizer’s signature on the power of attorney has been attested by a notary public and if the document itself contains an explicit statement, empowering the proxy to receive the dividend, due to the particular shareholder.
Question: I live abroad and I am a shareholder of yours in my capacity as a legal entity. How can I receive my dividend?
Answer: Payment of dividend to a proxy of a shareholder, living abroad, is possible, if the authorizer’s signature on the power of attorney has been attested by a notary public or at a Bulgarian Embassy or Consulate Office of the Republic of Bulgaria in the respective country and the document itself contains an explicit statement, empowering the proxy to receive the dividend, due to the particular shareholder.
The Bank will accept powers of attorney for receiving of dividend, which have been certified by foreign public notaries, operating in the following countries only: the United States of America, Canada and the European Union countries, as for representation purposes the authorizer shall have to submit the power of attorney at the Bank in person.
Powers of attorney, attested by foreign public notaries, shall have to be submitted to the Bank in legalized form, respectively accompanied with an apostille and translated in Bulgarian language by a sworn translator, whose signature should be attested by a notary public.
For individuals:
Question: What documents should I present in order to receive my dividend, if I am a natural person?
Answer: Payment of dividends to the Bank’s shareholders- natural persons - is being made after ascertainment of their identity by means of a presented valid ID card and in case the data of the person and his/her shareholding participation has been duly reflected in the system of Central Depository AD.
Question: I am a legal heir of a UBB shareholder- natural person. What documents should I present in order to receive my dividend and where could I obtain them from?
Answer: Payment of dividends to legal heirs of a deceased shareholder shall be made after presentation of a certificate for held financial instruments (depositary receipt), issued in the name of the legal heir by Central Depository AD, registration agent, a Legal Heir Certificate and an ID card of the heir.
Payment of dividend to more than one heir shall be made, conditioned on the simultaneous appearance of all heirs for the dividend payment, or in case a person appears, who has been duly authorized by all legal heirs to receive the dividend with a power of attorney, attested by a notary public.
If some of the legal heirs is a minor, dividend shall be paid to his/her parent/ guardian to an account in the name of the minor. Should some of the legal heirs be an underage person, dividend shall be paid upon the consent of a parent /guardian to an account of the underage person. The dividend sums can be paid to the parent / guardian or custodian, in case these have presented to the Bank a permission from the Regional Court as per the address of residence of the minor/underage person as per Art. 130, Para 3 of the Family Code for receiving the dividend sums, whose beneficiary is the minor / underage person.
Question: What kind of power of attorney do I need in order to receive the dividend?
Answer: Payment of dividend to a proxy of a shareholder is possible, if the authorizer’s signature on the power of attorney has been attested by a notary public and the document itself contains an explicit statement, empowering the proxy to receive the dividend, due to the respective shareholder.
Question: I live abroad and I am a shareholder of yours in my capacity as a natural person. How can I receive my dividend?
Answer: Payment of dividend to a proxy of a shareholder, living abroad, is possible, if the authorizer’s signature on the power of attorney has been attested by a notary public or at a Bulgarian Embassy or Consulate Office of the Republic of Bulgaria in the respective country and the document itself contains an explicit statement, empowering the proxy to receive the dividend, due to the particular shareholder.
The Bank will accept powers of attorney for receiving of dividend, due to a shareholder, which have been certified by foreign public notaries, operating in the following countries only: the United States of America, Canada and the European Union countries, as for representation purposes the authorizer shall have to submit the power of attorney at the Bank in person.
Powers of attorney, attested by foreign public notaries, shall have to be submitted to the Bank in legalized form, respectively accompanied with an apostille and translated in Bulgarian language by a sworn translator, whose signature should be attested by a notary public.
For legal entities:
For legal entities:
Question: What documents should I present in order to receive my dividend, in case of a legal entity?
Answer: If the legal entity-shareholder is a client of the Bank and its data and shareholding participation has been duly entered in the system of Central Depository AD, the dividend payment shall be made upon the request of the legal entity’s lawful representatives, as per the documents, presented at the Bank and certifying the legal status of the entity and the manner of its representation.
Upon changes in the circumstances, stated in the documents, presented at the Bank, the respective documents, evidencing the changes shall have to be presented.
If the legal entity-shareholder is not a client of the Bank, its lawful representatives shall have to submit the respective documents, certifying the entity’s legal status and representation.
Question: I am a legal successor of a UBB shareholder- legal entity. What documents should I present in order to receive my dividend and where could I obtain them from?
Answer: You need to provide documents, certifying the legal succession, as per the provisions of the applicable legislation.
Question: What kind of power of attorney do I need in order to receive the dividend?
Answer: Payment of dividend to a proxy of a shareholder is possible, if the authorizer’s signature on the power of attorney has been attested by a notary public and if the document itself contains an explicit statement, empowering the proxy to receive the dividend, due to the particular shareholder.
Question: I live abroad and I am a shareholder of yours in my capacity as a legal entity. How can I receive my dividend?
Answer: Payment of dividend to a proxy of a shareholder, living abroad, is possible, if the authorizer’s signature on the power of attorney has been attested by a notary public or at a Bulgarian Embassy or Consulate Office of the Republic of Bulgaria in the respective country and the document itself contains an explicit statement, empowering the proxy to receive the dividend, due to the particular shareholder.
The Bank will accept powers of attorney for receiving of dividend, which have been certified by foreign public notaries, operating in the following countries only: the United States of America, Canada and the European Union countries, as for representation purposes the authorizer shall have to submit the power of attorney at the Bank in person.
Powers of attorney, attested by foreign public notaries, shall have to be submitted to the Bank in legalized form, respectively accompanied with an apostille and translated in Bulgarian language by a sworn translator, whose signature should be attested by a notary public.
Tax-related Issues For individuals
Question: Why have I calculated my dividend as an amount Х, but I have received an amount Y?
Answer: The dividend amount entitlement for each shareholder has been calculated in accordance with the number of shares held and the amount of dividend per share, voted at the General Meeting of the Bank’s shareholders. If the shareholder is a person, for whom withholding tax should be deducted, then the net paid amount is the one after the determined tax.
Question: What tax do I owe for the dividend if I am a shareholder-natural person?
Answer: As per the currently effective legislation, the natural persons’ income tax equals 5% on the accrued dividend. The tax is being deducted from the gross amount of the dividend, as the payment obligation is of the dividend payer. The obligation to deduct and pay the tax is of the Bank.
Question: Should I declare the dividend in my tax return, if I am a shareholder-natural person?
Answer: No, you are not obliged to do so, as income from dividends, which are being levied with final tax, are not subject to declaring in the annual tax return, when they have been realized from a source in Bulgaria.
For legal entities
Question: What tax do I owe for the dividend if I am a legal entity?
Answer: Withholding tax is being levied on dividends from local legal entities in favour of:
- foreign legal entities, except for cases when dividends are being realized by a foreign legal entity by means of a place of business in Bulgaria;
- local legal entities, which are not merchants, municipalities included.
The tax is a final one and is being deducted by local legal entities, distributing dividends or liquidation stakes. This condition shall not be applicable when dividends and liquidation stakes have been distributed in favour of:
- a local legal entity, which participates in the company’s capital as a representative of the State;
- mutual fund;
- a foreign legal entity, which is a resident entity for tax purposes of an EU member state, or of another country-signatory to the Agreement on the European Economic Area, except for cases of hidden allocation of profit.
The amount of the due tax is 5%
For individuals
Question: Why have I calculated my dividend as an amount Х, but I have received an amount Y?
Answer: The dividend amount entitlement for each shareholder has been calculated in accordance with the number of shares held and the amount of dividend per share, voted at the General Meeting of the Bank’s shareholders. If the shareholder is a person, for whom withholding tax should be deducted, then the net paid amount is the one after the determined tax.
Question: What tax do I owe for the dividend if I am a shareholder-natural person?
Answer: As per the currently effective legislation, the natural persons’ income tax equals 5% on the accrued dividend. The tax is being deducted from the gross amount of the dividend, as the payment obligation is of the dividend payer. The obligation to deduct and pay the tax is of the Bank.
Question: Should I declare the dividend in my tax return, if I am a shareholder-natural person?
Answer: No, you are not obliged to do so, as income from dividends, which are being levied with final tax, are not subject to declaring in the annual tax return, when they have been realized from a source in Bulgaria.
For legal entities
Question: What tax do I owe for the dividend if I am a legal entity?
Answer: Withholding tax is being levied on dividends from local legal entities in favour of:
- foreign legal entities, except for cases when dividends are being realized by a foreign legal entity by means of a place of business in Bulgaria;
- local legal entities, which are not merchants, municipalities included.
The tax is a final one and is being deducted by local legal entities, distributing dividends or liquidation stakes. This condition shall not be applicable when dividends and liquidation stakes have been distributed in favour of:
- a local legal entity, which participates in the company’s capital as a representative of the State;
- mutual fund;
- a foreign legal entity, which is a resident entity for tax purposes of an EU member state, or of another country-signatory to the Agreement on the European Economic Area, except for cases of hidden allocation of profit.
The amount of the due tax is 5%
Miscellaneous I am not registered as a shareholder of the Bank in the system of Central Depository AD and/ or my data is wrong/incomplete. What do I need to do?
: If the employees at the Bank have informed you that you are not included in the list of the Bank’s shareholders in the system of Central Depository AD and/or your data is wrong/incomplete, you need to present at a branch of the Bank the documents, available to you and ascertaining your share participation. The Bank’s employees will inform you within a period of ten business days of the subsequent actions that need to be initiated.
After completing the shareholder authentication process and having rectified the data in the Bank’s book of shareholders, the payment of the dividend can be made not earlier than five business days after registering the shareholder or the rectified data for him/her /it with the Central Depository.
I have acquired shares of the Bank after the date of holding the annual General Meeting of Shareholders, at which a decision was made for payment of dividend. Am I entitled to receive dividend?
Entitled to receive dividend are only persons, who have been shareholders of the Bank as at the date of holding the annual General Meeting of Shareholders, at which a decision was made for payment of dividend.
How can I receive my dividend?
Dividend shall be paid upon a shareholder’s request in the following manners:
- in cash at a teller desk of UBB;
- with a fund transfer to an account with the Bank;
- via an interbank fund transfer in Bulgarian leva.
Question: Can I receive my dividend from any UBB branch?
Payment of dividends to shareholders of UBB is being made only at the Bank’s branches throughout the country, available at the following link: https://www.ubb.bg/offices/central-offices and at Sevlievo Branch (1 Svoboda Sq.), as an exception.
I am not registered as a shareholder of the Bank in the system of Central Depository AD and/ or my data is wrong/incomplete. What do I need to do?
: If the employees at the Bank have informed you that you are not included in the list of the Bank’s shareholders in the system of Central Depository AD and/or your data is wrong/incomplete, you need to present at a branch of the Bank the documents, available to you and ascertaining your share participation. The Bank’s employees will inform you within a period of ten business days of the subsequent actions that need to be initiated.
After completing the shareholder authentication process and having rectified the data in the Bank’s book of shareholders, the payment of the dividend can be made not earlier than five business days after registering the shareholder or the rectified data for him/her /it with the Central Depository.
I have acquired shares of the Bank after the date of holding the annual General Meeting of Shareholders, at which a decision was made for payment of dividend. Am I entitled to receive dividend?
Entitled to receive dividend are only persons, who have been shareholders of the Bank as at the date of holding the annual General Meeting of Shareholders, at which a decision was made for payment of dividend.
How can I receive my dividend?
Dividend shall be paid upon a shareholder’s request in the following manners:
- in cash at a teller desk of UBB;
- with a fund transfer to an account with the Bank;
- via an interbank fund transfer in Bulgarian leva.
Question: Can I receive my dividend from any UBB branch?
Payment of dividends to shareholders of UBB is being made only at the Bank’s branches throughout the country, available at the following link: https://www.ubb.bg/offices/central-offices and at Sevlievo Branch (1 Svoboda Sq.), as an exception.
