How are profits distributed in State-Owned Enterprises?
A distinction must be made between state entities and public companies created by law. In the case of the former, they are governed by the rules applicable to the type of company in question, i.e., in the case of corporations, the amount determined by the Ordinary Shareholders' Meeting will be paid as distribution of profits or dividends; and in the case of joint stock companies, the provisions of their bylaws will apply or, in the absence thereof, the rules of closely held corporations will apply.
In the case of public companies created by law, they are subject to a 40% tax (Article 2 of Decree Law N° 2,398), in addition to income tax.
This ultimately constitutes a form of payment of profits to their owner.
On the other hand, the minister of Finance, by means of supreme decree, may order the transfer to the general revenues of the Nation or other institutions or companies of the public sector of the net profits shown in the balance sheets of State institutions or State-Owned Enterprises (D.L. No. 1.263 of 1975, Article 29).