Sonderausschüttung

Sonderausschüttung, often called a one-off or special dividend, is a non-regular distribution of profits to shareholders that goes beyond the ordinary annual dividend. It is typically declared when a company has accumulated profits or reserves and wants to return surplus capital to investors without increasing the regular dividend schedule. Such distributions may be funded from retained earnings, capital reserves (Kapitalrücklage) or, less commonly, from other distributable reserves. The decision usually requires a resolution by the company's management and, depending on the jurisdiction, approval by the shareholders or the supervisory body; the amount is allocated to shareholders according to shareholdings and is paid in cash, sometimes in kind or as a credit against future distributions.

In accounting terms, a Sonderausschüttung reduces equity and is not treated as an expense for the company. It lowers retained earnings or reserves on the balance sheet. The cash impact is reflected in a decrease of cash and an equal decrease in equity.

Tax treatment generally follows the rules for regular dividends in the jurisdiction of the investor. In many tax systems, dividend distributions are subject to withholding tax or capital gains tax; the specific tax rate and possible exemptions depend on the investor's domicile, holding period, and bilateral tax treaties. Some jurisdictions distinguish special distributions from ordinary profits and may offer different reliefs, but this varies.

Examples of reasons for a Sonderausschüttung include returning excess liquidity after a sale of assets, or distributing profits that are not part of the ordinary operating profits. Companies use Sonderausschüttungen to adjust capital structure, signal financial strength, or align shareholder returns with liquidity events.