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TEXTON PROPERTY FUND LIMITED - Tax Treatment and Salient Dates

Release Date: 05/03/2019 08:30
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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 unaudited condensed consolidated financial results for the six months
ended 31 December 2018, as published on SENS on 5 March 2019, wherein shareholders were advised that
Texton’s Board of Directors has approved and declared an interim dividend of 36.18 cents per share for the
six month period ended 31 December 2018, payable to shareholders registered as such at the close of
business on Friday, 29 March 2019.

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 28.944 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:

                                                                                  2019
 Declaration date:                                                    Tuesday, 5 March
 Last day to trade:                                                  Tuesday, 26 March
 Ex-dividend date:                                                 Wednesday, 27 March
 Record date:                                                         Friday, 29 March
 Payment date:                                                         Monday, 1 April

Share certificates may not be dematerialised or rematerialised between Wednesday, 27 March 2019 and
Friday, 29 March 2019, both dates inclusive.

Payment of the dividends will be made to shareholders on or about Monday, 1 April 2019. In respect of
dematerialised shares, the dividends will be transferred to the CSDP accounts/broker accounts on or about
Monday, 1 April 2019. Certificated shareholders' dividend payments will be deposited on or about Monday,
1 April 2019.

Texton’s Income Tax reference number: 9353785158.

Issued shares as at 5 March 2019: 376 066 766.


Johannesburg
5 March 2019

Sponsor
Merchantec Capital

Date: 05/03/2019 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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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,
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