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Tax treatment
Texton Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/019302/06)
A Real Estate Investment Trust, listed on the JSE Limited
JSE share code: TEX ISIN: ZAE000190542
(formerly ISIN: ZAE000185872)
www.texton.co.za
Tax treatment
In accordance with Texton' status as a REIT, shareholders are advised that the
dividends meet 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
dividends 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 dividends 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. These dividends are, 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 dividends, if such documents have not already been submitted.
Dividends received by non-resident shareholders will not be taxable as income
in South Africa 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 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 38.3600 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 dividends if such documents have not already
been submitted, if applicable.
Board of directors
PD Naidoo (Chairman), JR Macey (Lead Independent), NV Balfour
(Chief Executive Officer), JD Wiese, KR Collins (alternate), KN Vundla,
JA Legh, MJ van Heerden, P Ntshalintshali,S Mia
Corporate information
Company registration number: 2005/019302/06
Company secretary: CIS Company Secretaries Proprietary Limited
(Gillian Prestwich)
Sponsor: Investec Bank Limited
Transfer secretary: Computershare Investor Services Proprietary Limited,
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
(PO Box 61051, Marshalltown, 2107 South Africa)
Physical and registered address: Block C, Investment Place, 10th Road,
Hyde Park, 2196
Postal address: PO Box 653129, Benmore, 2010
4 September 2017
Date: 04/09/2017 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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