Wrap Text
Tax Treatment and Salient Dates
TEXTON PROPERTY FUND LIMITED
Granted REIT status by the JSE
Incorporated in the Republic of South Africa
(Registration number 2005/019302/06)
Share code: TEX ISIN: ZAE000190542
(“Texton” or “the Company”)
TAX TREATMENT AND SALIENT DATES
Shareholders are referred to Texton’s provisional condensed financial results for the year ended 30 June
2018, as published on SENS on 28 September 2018, wherein shareholders were advised that Texton’s Board
of Directors has approved and declared a dividend of 41.36 cents per share for the year ended 30 June 2018,
payable to shareholders registered as such at the close of business on Monday, 22 October 2018.
In accordance with Texton's 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. 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 33.088 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.
The dividend is payable to Texton shareholders in accordance with the timetable set out below:
2018
Declaration date: Friday, 28 September
Last day to trade: Tuesday, 16 October
Ex-dividend date: Wednesday, 17 October
Record date: Friday, 19 October
Payment date: Monday, 22 October
Share certificates may not be dematerialised or rematerialised between Wednesday, 17 October 2018 and
Friday, 19 October 2018, both dates inclusive.
Payment of the dividends will be made to shareholders on or about Monday, 22 October 2018. In respect of
dematerialised shares, the dividends will be transferred to the CSDP accounts/broker accounts on or about
Tuesday, 3 April 2018. Certificated shareholders' dividend payments will be deposited on or about Monday,
22 October 2018.
Texton’s Income Tax reference number: 9353785158.
Issued shares as at 28 September 2018: 376 066 766.
Johannesburg
1 October 2018
Sponsor
Merchantec Capital
Date: 01/10/2018 12:10:00 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.
Sharenet Sites 
