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INDLUPLACE PROPERTIES LIMITED - Dividend for the quarter ended 31 December 2016 Salient dates and tax treatment

Release Date: 08/02/2017 08:45
Code(s): ILU     PDF:  
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Dividend for the quarter ended 31 December 2016 – 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 31 DECEMBER 2016 – SALIENT DATES AND TAX TREATMENT


The board of directors has approved the dividend for the quarter ended 31 December 2016. Notice is hereby
given of a cash dividend (dividend number 7) of 23,82951 cents per share for the quarter ended
31 December 2016, in accordance with the salient dates set out below:

                                                                                                      2017
Last date to trade cum distribution                                                   Tuesday, 28 February
Shares trade ex distribution                                                            Wednesday, 1 March
Record date                                                                                Friday, 3 March
Payment date                                                                               Monday, 6 March

Share certificates may not be dematerialised or rematerialised between Wednesday, 1 March 2017 and
Friday, 3 March 2017. Payment of the dividend will be made to shareholders on Monday, 6 March 2017. In
respect of dematerialised shares, the dividend will be transferred to the CSDP/broker accounts on Monday,
6 March 2017. Certificated shareholder’s divided payment will be deposited on or about Monday,
6 March 2017.

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
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. 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. From 1 January 2014, any dividend
received by a non-resident from a REIT is subject to dividends withholding tax at 15%, 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 15%, the net dividend amount due to non-resident shareholders is 20,25508 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: 241 945 767
Indluplace’s income tax reference number: 9390/649/177

8 February 2017

Sponsor
Java Capital

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