To view the PDF file, sign up for a MySharenet subscription.

DELTA PROPERTY FUND LIMITED - Tax implications

Release Date: 23/05/2016 15:19
Code(s): DLT     PDF:  
Wrap Text
Tax implications

Delta Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/005129/06)
Share code: DLT ISIN: ZAE000194049
("Delta" or “the Fund” or “the Group”)
(REIT status approved)

Tax implications

Further to the reviewed provisional condensed consolidated financial results for the year ended 29
February 2016 released on SENS on Monday, 16 May 2016, set out below the tax implication for the
dividend payment.

Tax implications for South African resident shareholders
Dividends received by or accrued to South African tax residents must be included in the gross
income of such shareholders and are not exempt from income tax in terms of the exclusion to the
general dividend exemption contained in Section 10(1)(k)(i)(aa) of the Income Tax Act because they
are dividends distributed by a REIT. These dividends are, however, exempt from dividend
withholding tax (“Dividend Tax”) in the hands of South African resident shareholders provided that
the South African resident shareholders have provided to the CSDP or broker, as the case may be, in
respect of dematerialised shares, or the transfer secretaries, in respect of certificated shares, a DTD
(EX) (Dividend Tax : Declaration and undertaking to be made by the beneficial owner of a share)
form to prove their status as a South African resident and indicating the exemption upon which they
are relying.

If resident shareholders have not submitted the abovementioned documentation to confirm their
status as a South African resident, they are advised to contact their CSDP or broker, as the case may
be, to arrange for the documents to be submitted prior to the payment of the dividend.

Tax implications for non-resident shareholders
Dividends received by non-resident shareholders from a REIT will not be taxable as income and will
be exempt from income tax in terms of the exemption in Section 10(1)(k)(i) of the Income Tax Act.
With effect from 1 January 2014, any dividend received by a non-resident from a REIT will be subject
to Dividend 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 non-
resident shareholder. Assuming Dividend Tax will be withheld at the current rate of 15%, the net
dividend amount due to non-resident shareholders is 40.72219 cents per share. A reduced Dividend
Tax rate in terms of the applicable DTA, may only be relied on if the non-resident shareholder has
provided the following forms to the CSDP or broker, as the case may be, in respect of dematerialised
shares, or the transfer secretaries, 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 the CSDP, broker or the transfer secretaries, 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.

If applicable, non-resident shareholders are advised to contact their CSDP, broker or the transfer
secretaries, 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.

688 327 947 Delta shares are in issue at the date of this dividend declaration and Delta’s income tax
reference number is 9464252148. A total number 533,097,436 shares are subject to the dividend
declaration.

23 May 2016

Sponsor: Nedbank Corporate and Investment Banking


Date: 23/05/2016 03:19:00 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.

Share This Story