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

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

Release Date: 10/05/2017 12:56
Code(s): EQU     PDF:  
Wrap Text
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 preliminary summarised audited consolidated financial statements for the
year ended 28 February 2017, published on SENS on Wednesday, 10 May 2017, and in particular, the notification
of a gross dividend payment of 55.92574 cents per share for the for the year ended 28 February 2017 (“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. On 22 February 2017, the dividends withholding tax rate was increased from
15% to 20% and accordingly, any distribution 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 44.74059 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:

                                                                                                          2017
Last date to trade cum dividend:                                                              Tuesday, 30 May
Shares trade ex dividend:                                                                    Wednesday, 31 May
Record date:                                                                                    Friday, 2 June
Payment date:                                                                                   Monday, 5 June

Share certificates may not be dematerialised or rematerialised between Wednesday, 31 May 2017 and Friday,
2 June 2017, both days inclusive.

The dividend will be transferred to dematerialised shareholders’ CSDP accounts/broker accounts on Monday,
5 June 2017. Certificated shareholders’ dividend payments will be paid to certificated shareholders’ bank
accounts on or about, Monday, 5 June 2017.

Shares in issue at the date of declaration of dividend: 350 465 100
Equities’ income tax reference number: 9275393180.

10 May 2017


Sponsor
Java Capital

Date: 10/05/2017 12:56:00 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