maximum dividend payout ratio for private ltd company?

[brit1984]

in Thailand, Is there a maximum payout ratio (i.e. dividend / net profit) for a private ltd company?

my accountant says maximum ratio is 80% but maybe she's wrong or maybe there is a language barrier issue

i know the work around is to pay more director fees but that is very inefficient from a tax perspective

[onthemoon]

What is a "private ltd company"? There is a "co. ltd." and a "limited partnership". Different beasts, but I haven't heard of a maximum payout ratio yet.

Note that dividends are paid after tax.

[brit1984]

What is a "private ltd company"? There is a "co. ltd." and a "limited partnership". Different beasts, but I haven't heard of a maximum payout ratio yet.

Note that dividends are paid after tax.

thanks for replying - it is a "co ltd"

sometimes the accountant tells me about "unwritten" rules that are worth following just to avoid problems with the tax office - this might be one of those cases but as my Thai and her English are limited, i could do with a second opinion

it seems a strange rule because by definition, as you say, tax has already been paid so why would they care? - i would have thought you can pay 100% of net profit (and 100% of retained earnings too)

has anyone paid more than 80% payout ratio as dividends?