To make a dividend you need to pay the shareholder net, and withhold the 20% tax to pay over to The Revenue Service.
The dividend needs to have been authorised by the directors at a meeting and they need to ensure that the company first passes the solvency test (company law):
Definition of solvency test:
You need to issue each shareholder with a dividend certificate which should show the date the dividend was declared, the gross amount, tax rate, tax amount and net amount paid. This can just take the form of a letter on your headed paper to the shareholder and head it something like ‘dividend certificate’ – there is no standard format.
You can just do one cheque to The Revenue Service if there are multiple shareholders.
A distribution report needs to be submitted. We can do this for you as we already have authority OR I attach an authority form.