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RESILIENT PROPERTY INCOME FUND LTD - Tax treatment of dividend

Release Date: 04/02/2015 15:41
Code(s): RES     PDF:  
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Tax treatment of dividend

RESILIENT PROPERTY INCOME FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/016851/06)
JSE share code: RES ISIN: ZAE000190807
(Approved as a REIT by the JSE)
(“Resilient” or “the company”)


TAX TREATMENT OF DIVIDEND


Shareholders are referred to Resilient’s condensed reviewed consolidated interim financial statements for the six
months ended 31 December 2014, published on SENS on 4 February 2015, wherein shareholders were advised of the
dividend of 185,62 cents per share for the six months ended 31 December 2014 (“the dividend”).

In accordance with Resilient’s status as a REIT, shareholders are advised that the dividend meets the requirements of
a “qualifying distribution” for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 (“Income Tax
Act”). The dividend on the shares will be deemed to be a dividend, for South African tax purposes, in terms of
section 25BB of the Income Tax Act.

The dividend received by or accrued to South African tax residents must be included in the gross income of such
shareholders and will not be exempt from income tax (in terms of the exclusion to the general dividend exemption,
contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because it is a dividend distributed by a
REIT. This dividend is, however, exempt from dividend withholding tax in the hands of South African tax resident
shareholders, provided that the South African resident shareholders provide the following forms to their Central
Securities Depository Participant (“CSDP”) or broker, as the case may be, in respect of uncertificated shares, or the
company, in respect of certificated shares:

      a)    a declaration that the dividend is exempt from dividends tax; and

      b)    a written undertaking to inform the CSDP, broker or the company, as the case may be, should the
            circumstances affecting the exemption change or the beneficial owner cease to be the beneficial owner,

      both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders are
      advised to contact their CSDP, broker or the company, as the case may be, to arrange for the abovementioned
      documents to be submitted prior to payment of the dividend, if such documents have not already been
      submitted.

Dividends received by non-resident shareholders will not be taxable as income and instead will be treated as an
ordinary dividend which is exempt from income tax in terms of the general dividend exemption in section 10(1)(k)(i)
of the Income Tax Act. It should be noted that up to 31 December 2013 dividends received by non-residents from a
REIT were not subject to dividend withholding tax. From 1 January 2014, any dividend received by a non-resident
from a REIT will be subject to dividend withholding tax at 15%, unless the rate is reduced in terms of any applicable
agreement for the avoidance of double taxation (“DTA”) between South Africa and the country of residence of the
shareholder. Assuming dividend withholding tax will be withheld at a rate of 15%, the net dividend amount due to
non-resident shareholders is 157,777 cents per share. A reduced dividend withholding rate in terms of the applicable
DTA may only be relied on if the non-resident shareholder has provided the following forms to their CSDP or
broker, as the case may be, in respect of uncertificated shares, or the company, in respect of certificated shares:

      a)    a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA; and

      b)    a written undertaking to inform their CSDP, broker or the company, as the case may be, should the
            circumstances affecting the reduced rate change or the beneficial owner cease to be the beneficial
            owner,

      both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident
      shareholders are advised to contact their CSDP, broker or the company, as the case may be, to arrange for the
      abovementioned documents to be submitted prior to payment of the dividend if such documents have not
      already been submitted, if applicable.

The dividend is payable to Resilient shareholders in accordance with the timetable set out below:
                                                                                                                2015
 Last date to trade cum dividend:                                                                Friday, 20 February
 Shares trade ex dividend:                                                                       Monday, 23 February
 Record date:                                                                                    Friday, 27 February
 Payment date:                                                                                       Monday, 2 March

Share certificates may not be dematerialised or rematerialised between Monday, 23 February 2015 and Friday,
27 February 2015, both days inclusive.

Payment of the dividend will be made to shareholders on Monday, 2 March 2015. In respect of dematerialised
shares, the dividend will be transferred to the CSDP accounts/broker accounts on Monday, 2 March 2015.
Certificated shareholders’ dividend payments will be posted on or about Monday, 2 March 2015.

Shares in issue at the date of declaration of this dividend: 342 209 172
Resilient’s income tax reference number: 9579269144

4 February 2015


Sponsor

Java Capital

Date: 04/02/2015 03:41:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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