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Dividend for the quarter ended 30 June 2017 - Salient dates and tax treatment
GEMGROW PROPERTIES LIMITED
(previously Synergy Income Fund Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2007/032604/06)
JSE share code: GPA ISIN: ZAE000223269
JSE share code: GPB ISIN: ZAE000223277
(Granted REIT status with the JSE)
(“Gemgrow” or “the company”)
DIVIDEND FOR THE QUARTER ENDED 30 JUNE 2017 - SALIENT DATES AND TAX TREATMENT
The board of directors has approved and notice is hereby given of a cash dividend (dividend number 3) of
26.08791 cents per A ordinary share and 18.52000 cents per B ordinary share for the quarter ended
30 June 2017, in accordance with the salient dates set out below:
2017
Last day to trade cum dividend: Tuesday, 5 September
Shares trade ex dividend: Wednesday, 6 September
Record date: Friday, 8 September
Payment date: Monday, 11 September
Share certificates may not be dematerialised or rematerialised between Wednesday, 6 September 2017 and
Friday, 8 September 2017, both days inclusive.
Payment of the dividend will be made to shareholders on Monday, 11 September 2017. In respect of
dematerialised shares, the dividend will be transferred to the Central Securities Depository Participant
(“CSDP”) accounts/broker accounts on Monday, 11 September 2017. Certificated shareholders’ dividend
payments will be deposited on or about Monday, 11 September 2017.
TAX TREATMENT OF DIVIDEND
In accordance with Gemgrow’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 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 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
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. From 22 February 2017, any distributions 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 20.87033 cents per A ordinary share and 14.81600
cents per B ordinary share. A reduced dividend withholding rate in terms of the applicable DTA, may only
be relied on if the non–resident shareholder qualifies for exemption and has provided the following forms to
its 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.
A ordinary shares in issue at the date of declaration of this dividend: 47 352 203
B ordinary shares in issue at the date of declaration of this dividend: 400 710 459
Gemgrow’s income tax reference number: 9068/723/17/1
16 August 2017
Sponsor
Java Capital
Date: 16/08/2017 03:13:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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