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INLP - Investec Bank Limited - Dividend Withholding Tax Announcement Investec Bank Limited Incorporated in the Republic of South Africa Registration number 1969/004763/06 JSE share code: INLP ISIN: ZAE123000048393 CHANGES TO SECONDARY TAX ON COMPANIES AND THE INTRODUCTION OF A DIVIDEND WITHHOLDING TAX AND THEIR EFFECT ON THE INVESTEC BANK LIMITED NON-REDEEMABLE, NON-CUMULATIVE, NON-PARTICIPATING PREFERENCE SHARES Holders of Investec Bank Limited ("Investec Bank") non-redeemable, non- cumulative, non-participating preference shares ("Investec Bank Preference Shares") are referred to the announcement, released on the Securities Exchange News Service of JSE Limited on 26 February 2007, dealing with the grossing up of the Investec Bank Preference Share dividends as a result of the then proposed amendments to the tax legislation regarding the changes to Secondary Tax on Companies ("STC") and the introduction of a dividend withholding tax on all dividend distributions by a company to its shareholders, as contemplated in sections 64D to 64N of the Income Tax Act, 58 of 1962, as amended ("Income Tax Act") ("Dividend Withholding Tax"). The impact of the change in the Income Tax Act is that STC will be abolished as at 31 March 2012 and the Dividend Withholding Tax will be introduced for dividends paid after 1 April 2012 at a rate of 15%, subject to certain exemptions. As in the past, the Investec Bank, as the Issuer, will pay the semi- annual dividends to the transfer secretaries, who distribute the dividends to the preference shareholders through the regulated intermediaries (i.e. CSDP`s). These entities are required to pay the dividends to the preference shareholders after deducting the Dividend Withholding Tax, unless the shareholders have advised the regulated intermediary that they are exempt in terms of the provisions of the Income Tax Act. We recommend that holders of the Investec Bank Preference Shares who may be exempt from paying Dividend Withholding Tax get in touch with their CSDP`s / Brokers to ensure that their personal information is updated and that they verify whether they are exempt from paying the Dividend Withholding Tax. The board of directors of Investec Bank has consequently resolved to amend the rate used to calculate the dividend payable on the Investec Bank Preference Shares on or about 02 August 2012, being the date on which the Annual General Meeting of Investec will take place, from the current rate of 75% of the prime rate to 83,33% of the prime rate, to the extent that Investec Bank does not have sufficient STC credits, and subject to the passing of the required resolutions by both the holders of Investec Bank Preference Shares and the holders of Investec Bank Ordinary Shares. A circular containing full detail of the amendment to the terms of the Investec Bank Preference Shares, including, inter alia, a notice convening a Class Meeting of Investec Bank Preference Shareholders, together with the notice of the Annual General Meeting of Investec Bank will be posted on or about 30 June 2012. Holders of the Investec Bank Preference Shares will not be prejudiced by the Dividend Withholding Tax in respect of dividend number 15 for the period to 31 March 2012, which will be declared and payable after 01 April 2012, as Investec Bank has sufficient STC credits. London and Johannesburg 15 March 2012 Sponsor: Investec Bank Limited Date: 15/03/2012 11:06:48 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
