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EQUITES PROPERTY FUND LIMITED - Dividend: Tax treatment and salient dates

Release Date: 13/10/2016 07:05
Code(s): EQU     PDF:  
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Dividend: Tax treatment and salient dates

EQUITES PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2013/080877/06)
JSE share code: EQU  ISIN: ZAE000188843
(Approved as a REIT by the JSE)
(“Equites” or “the company”)


DIVIDEND: TAX TREATMENT AND SALIENT DATES


Shareholders are referred to Equites’ unaudited condensed consolidated interim results for the six months
ended 31 August 2016, published on SENS on Thursday, 13 October 2016, and in particular, the
notification of a gross dividend payment of 54.44282 cents per share for the six months ended 31 August
2016 (“the dividend”).

In accordance with Equities’ 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 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,
provided 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. Since 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 46.27639 cents per share. A reduced dividend withholding rate in terms of the applicable DTA, may only
be relied upon 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 Equites’ shareholders in accordance with the timetable set out below:

                                                                                                 2016
Last date to trade cum dividend:                                                  Tuesday, 1 November
Shares trade ex dividend:                                                       Wednesday, 2 November
Record date:                                                                       Friday, 4 November
Payment date:                                                                      Monday, 7 November

Share certificates may not be dematerialised or rematerialised between Wednesday, 2 November 2016 and
Friday, 4 November 2016, both days inclusive.

The dividend will be transferred to dematerialised shareholders’ CSDP accounts/broker accounts on
Monday, 7 November 2016. Certificated shareholders’ dividend payments will be paid to certificated
shareholders’ bank accounts on or about, Monday, 7 November 2016.

Shares in issue at the date of declaration of dividend: 280 152 669
Equities’ income tax reference number: 9275393180.

13 October 2016


Sponsor
Java Capital

Date: 13/10/2016 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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