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INDLUPLACE PROPERTIES LIMITED - Dividend for the quarter ended 30 June 2017 Salient dates and tax treatment

Release Date: 10/08/2017 08:35
Code(s): ILU     PDF:  
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Dividend for the quarter ended 30 June 2017 – Salient dates and tax treatment

INDLUPLACE PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2013/226082/06)
JSE share code: ILU ISIN: ZAE000201125
(Approved as a REIT by the JSE)
(“Indluplace” or “the company”)


DIVIDEND FOR THE QUARTER ENDED 30 JUNE 2017 – SALIENT DATES AND TAX TREATMENT


The board of directors has approved the dividend for the quarter ended 30 June 2017. Notice is hereby given of a cash
dividend (dividend number 9) of 24.72452 cents per share for the quarter ended 30 June 2017, in accordance with the
salient dates set out below:

                                                                                                             2017
 Last date to trade cum dividend                                                               Tuesday, 29 August
 Shares trade ex dividend                                                                    Wednesday, 30 August
 Record date                                                                                  Friday, 1 September
 Payment date                                                                                 Monday, 4 September

Share certificates may not be dematerialised or rematerialised between Wednesday, 30 August 2017 and Friday,
1 September 2017. Payment of the dividend will be made to shareholders on Monday, 4 September 2017. In respect of
dematerialised shares, the dividend will be transferred to the CSDP/broker accounts on Monday, 4 September 2017.
Certificated shareholders’ dividend payments will be deposited on or about Monday, 4 September 2017.

TAX TREATMENT OF DIVIDEND

In accordance with Indluplace’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 distribution on 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 they are dividends distributed by a
REIT. This dividend is, however, exempt from dividends 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 ordinary
dividends which are 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 dividend received by a non–resident from a REIT is subject to dividends 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 shareholders. Assuming dividend withholding tax will be withheld at a rate
of 20%, the net dividend amount due to non–resident shareholders is 19.77962 cents per share. A reduced dividend
withholding rate in terms of the applicable DTA, may only be relied on if the non–resident shareholders have provided
the following forms to their CSDP or broker, as the case may be, in respect of uncertificated shareholders, or the
company, in respect of certificated shareholders:
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.

Shares in issue at the date of declaration of this dividend: 289 209 449
Indluplace’s income tax reference number: 9390/649/177

10 August 2017


Sponsor
Java Capital

Date: 10/08/2017 08:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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