Listed company Best Holdings Ltd. will have to pay an additional corporate tax after deciding not to declare any dividend for the 2024-25 financial year, despite posting a net profit.
Under Bangladesh’s prevailing income tax law, listed companies are required to distribute at least 30 percent of their profits as dividends. Companies declaring less than the required payout are subject to an additional 10 percent tax on the retained portion of their earnings.
According to the company’s latest financial statements, Best Holdings reported earnings per share (EPS) of Tk 0.30 for FY2024-25, translating into a net profit of approximately Tk 31.78 crore. However, its board of directors has recommended neither a cash dividend nor a stock dividend, meaning the entire profit will be transferred to retained earnings.
As a result, the company is expected to pay around Tk 3.18 crore in additional tax, equivalent to 10 percent of its retained net profit.
The company’s financial performance also weakened significantly during the year. Earnings per share dropped from Tk 1.43 in the previous fiscal year to Tk 0.30, representing a decline of nearly 79 percent in net profit.
Best Holdings, which was listed on the stock exchanges in 2024, has a paid-up capital of Tk 1,059.23 crore. Public and other non-sponsor shareholders currently hold 34.66 percent of the company’s shares.
