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Dividend: Tax treatment and salient dates
TRANSCEND RESIDENTIAL PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
Registration number 2016/277183/06
JSE share code: TPF ISIN: ZAE000227765
(Approved as a REIT by the JSE)
(“Transcend”)
DIVIDEND: TAX TREATMENT AND SALIENT DATES
Shareholders are referred to Transcend’s provisional summarised audited financial statements for the period ended
31 December 2016, published on SENS on 30 March 2017, wherein shareholders were advised of the gross dividend
of 5.60803 cents per share for the year ended 31 December 2016 (“the dividend”).
In accordance with Transcend’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. On 22 February 2017, the dividend withholding tax rate was increased from 15% to 20% and
accordingly, any dividend received by a non-resident from a REIT will be subject to dividend withholding tax at
20%, 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 20%, the net dividend amount due to non-resident shareholders is 4.48642 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 Transcend shareholders in accordance with the timetable set out below:
2017
Last date to trade cum dividend: Tuesday, 18 April
Shares trade ex dividend: Wednesday, 19 April
Record date: Friday, 21 April
Payment date: Monday, 24 April
Share certificates may not be dematerialised or rematerialised between Wednesday, 19 April 2017 and Friday,
21 April 2017, both days inclusive.
In respect of dematerialised shareholders, the dividend will be transferred to the CSDP accounts/broker accounts on
Monday, 24 April 2017. Certificated shareholders’ dividend payments will be deposited on or about Monday,
24 April 2017.
Shares in issue at the date of declaration of this dividend: 66 305 662
Transcend’s income tax reference number: 9015377253
30 March 2017
Designated advisor
Java Capital
Date: 30/03/2017 12:04:00 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,
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